UPDATE: Citigroup Downgrades Sabra Healthcare to Neutral

Citigroup has published a research report on Sabra Healthcare SBRA and has downgraded the company from Buy to Neutral due to the stock's progress since its all time low in October 2011. In the report, Citigroup writes, "When we initiated coverage of SBRA, the stock was trading with a 13.5% implied cap rate (versus asset values of ~9-10%) and ~14% dividend yield, representing a significant value play to investors looking to capitalize on market dislocation from concerns surrounding CMS reimbursement and the health of the skilled nursing asset class. We are still positive on SBRA longer-term and believe the company can continue to reduce risk through diversifying away from SNFs and Sun through accretive acquisitions. We increase our target price to $17 and remove our “High Risk” rating." Citigroup has raised the price target from $16 to $17 on Sabra Healthcare, which is currently trading down $0.11 from yesterday's $15.96 closing price.