UPDATE: Key Banc Downgrades HCP to Underweight, Establishes PT of $34

Key Banc lowers its rating on HCP

to Underweight from Hold and established a downside price target of $34 on continued sector risks. Key Banc says, "Despite easing uncertainty in the health care regulatory environment in the near term, we continue to see risks to health care real estate valuations as the political will to cut health care spending remains a risk. Additionally, we see more attractive organic growth in sectors with more leverage to an improving economy. While we acknowledge the above average rent growth embedded in HCP's senior housing (29% of NOI) and skilled nursing facilities (38%) as a result of lease transitions (to Emeritus and Brookdale) and its HCR ManorCare acquisition, we view this growth as fully priced into the stock today." HCP closed at $24.52 per share on Wednesday.