Omega cut to Sell at Wells Fargo


Omega Healthcare's (OHI) strong outperformance in 2013 (+33% vs. -6% for healthcare and +2.5% for broader REIT sector) has left the stock with a premium valuation amid " the threat of rising interest rates (OHI has some of the longest term leases) and ever-increasing threat of government reimbursement cuts and sequestration that could negatively impact OHI's operators and ultimately visibility into OHI's rent coverage ratios and dividends."

Wells downgrades Omega to Sell with valuation range cut to $27-$29 from $28-$31.

See also: Wells downgrades Senior Housing Properties to Sell.

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Comments (5)
  • jayridescarbon
    , contributor
    Comments (353) | Send Message
     
    laughable call. Price to FFO of 12 is a "premium valuation?" This call is only about 8 months late. Market paying virtually no attention.
    7 Jan 2014, 09:53 AM Reply Like
  • reader
    , contributor
    Comments (326) | Send Message
     
    Bought it for the income, will keep it for the same reason.
    7 Jan 2014, 09:27 PM Reply Like
  • reader
    , contributor
    Comments (326) | Send Message
     
    Bought OHI for the income, will keep it for same.
    7 Jan 2014, 09:29 PM Reply Like
  • surfgeezer
    , contributor
    Comments (10019) | Send Message
     
    Hopefully it causes a dip, want more if yield goes higher.
    7 Jan 2014, 10:19 PM Reply Like
  • romilar
    , contributor
    Comments (777) | Send Message
     
    I am encouraged by the comments and discouraged by the rise in interest rates. I will hang in w/ OHI and perhaps add to lower my share cost average.

     

    If the affordable care act isn't remembered by the consuming public as anything else, I think it's alternate tittle might be "The bill 'o confusion". I can't think of a single event that has had a more devastating impact on our entire healthcare sector. Apologies for the drift off-thread....Rom
    10 Jan 2014, 02:32 PM Reply Like
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