UPDATE: Bank of America Initiates Coverage on National Health Investors with Neutral Rating, $61 PT on Valuation

In a report published Thursday, Bank of America analyst Juan C. Sanabria initiated coverage on National Health Investors NHI with a Neutral rating and $61.00 price target. In the report, Bank of America noted, “We are initiating coverage on National Health Investors, Inc. (NHI) with a Neutral rating based on valuation and a $61 PO. NHI owns 171 properties in 30 states with 24 lessees. 49% of rents are from private pay seniors housing (SH) assets (including 13% via a RIDEA JV) with 41% from skilled-nursing facilities (SNFs). While we like NHI's rent coverage and strong balance sheet, and expect SNF exposure to continue to decrease, in our view NHI's valuation is full at current levels. We remain underweight healthcare within REITs*. While we do not foresee any major negative catalysts for the group, we see limited upside in an improving economy given the length of triple net leases. In addition, we expect rising rates will impact the pace and accretion from acquisitions.” National Health Investors closed on Wednesday at $57.61.