Medical Properties Trust: The Path To Gains Is Clearer Than Ever

StockBros Research
2.97K Followers

Summary

  • Medical Properties Trust stock is trading at a significant discount to its book value, even after adjusting for expected impairments, suggesting around 50% upside potential.
  • The recent settlement with Steward Health has resolved major issues, allowing MPW to regain control of 23 hospitals and secure new tenants.
  • Book value can increase over time as MPW pays less in dividends, remains profitable on a normalized FFO basis, and benefits from the Federal Reserve's rate cuts.
  • Risks include a large debt load, concentration risk, and a downtrending chart, but the long-term potential justifies a Buy rating.

Portrait of male doctor in exam room

MoMo Productions/DigitalVision via Getty Images

Medical Properties Trust (NYSE:MPW) stock, also known as MPT, has rallied and squeezed short sellers recently after reaching a settlement with Steward Health, one of its tenants that recently went bankrupt. Following this settlement, it seems

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2.97K Followers
I prefer to look for GARP (growth at a reasonable price) stocks but also look for opportunities everywhere else. I don't have a specified time horizon. I invest in a stock for as long as my thesis holds true, and I get out when the facts change. In addition, I've developed market-beating algorithms with Python that have helped me find attractive investment opportunities within my own portfolio, and I have been investing since 2016.On top of that, I've worked at TipRanks as an analysis/news writer and even as an editor for a few years, which not only kept me on top of the market but also helped me understand what people are interested in reading. Further, as an editor, I learned to pay attention to detail and found that there's plenty of misinformation and "fluff" out there that needs to be corrected. Thus, my goal is to provide accurate and useful information to the best of my abilities.I was previously associated with Investor's Compass.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in MPW over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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