Omega cut to Sell at Wells Fargo

|About: Omega Healthcare Investo... (OHI)|By:, SA News Editor

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.