Update shared on04 Sep 2025
The consensus analyst price target for CareTrust REIT was maintained at $36.89, as analysts cite the successful equity offering and strengthened balance sheet as supporting a robust investment pipeline and near-term growth.
Analyst Commentary
- Upsized follow-on equity offering generating $736M in gross proceeds, providing significant funding.
- Proceeds earmarked for a $600M investment pipeline, meeting near-term capital requirements.
- Additional capital will be used to repay existing line balances, strengthening the balance sheet.
- Creation of incremental capacity to fund future investments, supporting growth outlook.
- Bullish analysts highlight ongoing and accretive year-to-date capital deployment and a robust investment pipeline.
What's in the News
- CareTrust REIT completed a $640 million follow-on equity offering of 20 million shares at $32 per share, with a $1.28 discount per share.
- Wells Fargo Securities, KeyBanc Capital Markets, Morgan Stanley, and BMO Capital Markets were added as co-lead underwriters for the $640 million offering.
- Common stock and certain restricted stock units are subject to a 46-day lock-up period, restricting sales and related activities by the company and insiders.
- The company raised 2025 net income guidance to a range of $1.43–$1.45 per share.
- CareTrust REIT is actively seeking acquisitions, highlighting a robust pipeline in both U.S. and U.K. skilled nursing and seniors housing sectors.
Valuation Changes
Summary of Valuation Changes for CareTrust REIT
- The Consensus Analyst Price Target remained effectively unchanged, at $36.89.
- The Future P/E for CareTrust REIT has significantly fallen from 26.85x to 24.10x.
- The Discount Rate for CareTrust REIT remained effectively unchanged, at 7.11%.
Disclaimer
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