Seeking Alpha

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 (290) | 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 (327) | 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 (327) | Send Message
    Bought OHI for the income, will keep it for same.
    7 Jan 2014, 09:29 PM Reply Like
  • surfgeezer
    , contributor
    Comments (7759) | Send Message
    Hopefully it causes a dip, want more if yield goes higher.
    7 Jan 2014, 10:19 PM Reply Like
  • romilar
    , contributor
    Comments (699) | 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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