Oppenheimer Reiterates Rating, Raises Price Target On Physicians Realty Trust On Acquisition Update And Equity Offering

In a report published Friday, Oppenheimer analyst Steve Manaker reiterated an Outperform rating on Physicians Realty Trust (NYSE: DOC), and raised the price target from $16.75 to $18.00.In the report, Oppenheimer noted, “We maintain our Outperform rating and raise our price target to $18 despite lowering our 2015 FFO estimate. Our new price target implies a 13.8% total return, including the 5.8% dividend yield. DOC closed $105 million of acquisitions in 4Q14 and is starting 2015 with $206 million of acquisitions near closing. In order to finance the pipeline, DOC announced the sale of 15 million shares. Previously, we assumed a similar-sized offering but at the end of 2Q15. This change is lowering our 2015 FFO estimate to $1.00 from $1.03, but our 4Q15 estimate remains the same—this is our stable quarterly run-rate FFO est. for DOC assuming $450 million of acquisitions done in the first nine months of 2015.”Physicians Realty Trust closed on Thursday at $16.64.