JP Morgan Initiates Coverage on Healthcare Trust of America with a Neutral Rating and $12 PT on Single Digit Core Growth

In a report published by JP Morgan, analyst Michael W. Mueller initiated coverage on Healthcare Trust of America with a Neutral rating and $12 YE 2013 price target. JP Morgan reported that, “We are initiating coverage of Healthcare Trust of America HTA with a Neutral rating and a $12 YE 2013 price target. The company was formed in 2006 and operated as a non-traded REIT until its June 2012 NYSE listing. HTA is a health care REIT that is focused primarily on the ownership and operation of medical office buildings (MOBs), and the company is well positioned to generate stable, low single-digit, core growth which it will supplement via acquisition activity. On the positive side, the underlying business should produce stable mid-single digit growth and we think the stock's 5.0% dividend yield should be attractive to income-oriented investors. However, the stock has been a strong performer since its listing which puts valuation well inside of its acquisition cap rates, and we continue to prefer more economically leveraged property sectors at this point in the cycle.” Shares of healthcare trust of America closed at $11.48 on Thursday.