CareTrust's Growth Prospects: Analyst Upgrades Amid Growing Pipeline Of Opportunities, Accretive Acquisitions


27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


BMO Capital Markets analyst Juan C. Sanabria upgraded CareTrust REIT, Inc. (NYSE:CTRE) from Market Perform to Outperform, raising the price target to $24 from $23.50.

Sanabria sees limited risks over the near-to-medium term from pending minimum staffing regulation. 

At the same time, the analyst adds that accretive acquisitions have re-emerged with private buyers partially sidelined & CTRE enjoying a solid cost of capital with a growing pipeline of opportunities.

Sanabria applauds CTRE's solid and growing pipeline ($150 million) after executing a robust $215 million in new investments year-to-date at 8.5%.

The analyst is remarkably upbeat about skilled nursing (SNF) amidst a more constructive reimbursement environment.

The analyst thinks that SNF fears are receding as occupancy and labor availability continue to improve, albeit slowly.

As labor challenges & occupancy have slowly improved, the analyst sees diminished chances for future SNF rent cuts/deferrals with CTRE nearly done with its repositioning.

CTRE has a solid top tenant roster that's now primarily repositioned post-COVID, highlighted by The Ensign Group, Inc.  (NASDAQ:ENSG) (35% of rents), a blue-chip SNF operator with 3.3x EBITDAR rent coverage, notes the analyst.

CTRE also has a strong balance sheet, and management has deep industry experience, the analyst adds.

However, the company may bear the brunt of new tenant issues emerging or investment competition intensifying. 

Price Action: CTRE shares are trading lower by 0.25% to $19.84 on the last check Wednesday.


27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

Posted In: Analyst ColorEquitiesNewsUpgradesPrice TargetSmall CapMarketsAnalyst RatingsTrading IdeasGeneralBriefsExpert Ideas