UPDATE: Goldman Sachs Reiterates $41 PT and Buy Rating on Omega Healthcare Investors on Attractive Valuation

Goldman Sachs analyst Andrew Rosivach published a report on Omega Healthcare Investors

that reiterated its Buy rating and $41 price target. Goldman Sachs reported that, “We are initiating coverage of Omega Healthcare (OHI) with a Buy rating, relative to our Attractive healthcare coverage view, and we add the shares to the Americas Conviction List. We have a 12-month price target of $41 (51% upside including dividends). We believe a wide spread between acquisition yields and corporate cost of capital and a smaller current earnings base will support robust earnings growth despite limited contractual rent growth. We estimate that OHI's projected six-year AFFO growth of 99% will be the 4th highest in all of our coverage. In addition, we think that OHI should be able to weather the current government reimbursement environment with minimal impact to its business given current in-place coverage levels and lease durations.” Shares of Omega Healthcare Investors closed at $28.34 on Wednesday.