Dane Bowler
Value, hedge fund analyst, REITs, long/short equity
Dane Bowler is a long-time contributor to Seeking Alpha who focuses mainly on REITS.

Medical Properties Trust's Dominant Market Share Propels Outsized Growth

The Buy Thesis

Our buy thesis for Medical Properties Trust (NYSE:MPW) is quite simple in that the company is far too high-quality to be trading at such a cheap price. It will take the following form.

MPW is the leader of the industry with substantial and sustainable competitive advantage. The present valuation does not account for its superior quality. Therefore, MPW is a strong buy at the current pricing.

As the dominant player with a superior growth trajectory, it should trade at a slight premium to the sector with a multiple of 15X, which equates to a market price of $19.50. This implies 32% upside in holding MPW, in addition to a dividend yield over 6%.

In the

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details