However, the brokerage said shares have performed strongly over the last year and appear fully valued by historical standards and relative to peers.
"[W]e do not expect FFO multiples to rise given the likely increase in interest rates in late 2016. We would look for a non-fundamental pullback to $62 as an opportunity to move the stock to our BUY list," analyst Jacob Kilstein wrote in a note.
Last month, Ventas lowered its 2016 FFO guidance to $4.05–$4.13 from $4.13–$4.21 per share, reflecting dilution from equity issued to help fund the Blackstone acquisition.
However, the analyst reiterated its 2016 FFO estimate of $4.13 per share and raised its 2017 FFO estimate to $4.28 per share from $4.22 based on expectations for stronger operating results next year.
"We expect a clearer path for growth in 2017 after asset sales and dilutive equity issuance this year," Kilstein added.
Ventas shares have outperformed the S&P 500 over the last three months, rising 11 percent compared to a 4 percent increase in the broad market. They have also outperformed over the last year, with a gain of 34 percent versus a gain of 16 percent for the market.
At time of writing, shares of Ventas fell 2.61 percent on the day to $71.61.
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