While noting that HCP, Inc. (NYSE: HCP) is set to spin off HCR ManorCare into a separate publicly traded REIT, named Quality Care Properties (QCP), Argus said the spinoff is unlikely to materially benefit the company until 2017.
Nevertheless, the company is expected to reap the benefits of favorable demographics, a high quality real estate portfolio and a healthy balance sheet.
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Additionally, the company's stock may also be alluring to investors who look for income accretion. That said, the threat of a Fed rate hike looms large, as REITS would be hurt by rising rate environment.
The brokerage raised its FFO estimate for the company to $2.83 from $2.77, premised on the release of better than expected second quarter results and the revised guidance.
Argus has a Hold rating on shares, although the firm spoke about revisiting the rating once the effects of the spin-ff becomes clearer in the coming quarters.
27% profit every 20 days?
This is what Nic Chahine averages with his option 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.