UPDATE: Stifel Reiterates Buy Rating, Lowers PT on Health Care REIT on Higher Interest Rates

In a report published Wednesday, Stifel analyst Robert Mains reiterated a Buy rating on Health Care REIT HCN, but lowered the price target from $81.00 to $71.00. In the report, Stifel noted, “As we have done with other healthcare REITs in our coverage, we are adjusting our expectations to reflect higher interest rates. We are raising our interest rate assumption on incremental debt by 50 basis points, affecting earnings prospectively. We have raised all cap rate assumptions by 25 basis points, which lowers both our NAV estimate and our target price. We have also lowered our acquisition assumptions for the remainder of the year for Health Care REIT, lowering our third quarter estimate (outside of already-announced transactions) from $250 million to $150 million and our fourth quarter estimate from $400 million to $250 million.” Health Care REIT closed on Tuesday at $63.25.