Mizhuo Securities USA analyst Vikram Malhotra has resumed coverage of Healthpeak Properties (DOC) with a Buy rating. He believes that the REIT’s current valuation represents an attractive entry point and sees three drivers/catalysts for multiple re-rating:
1.
Asset sales and share buybacks:
Malhotra expects Healthpeak to continue to sell non-core assets and use the proceeds to buy back shares, which will boost earnings per share.2.
Life science fundamentals inflection in H2 2024:
Malhotra expects demand for life science space to pick up in the second half of 2024, which will benefit Healthpeak’s portfolio of life science properties.3.
Steady growth from medical office buildings and increased synergies from the merger:
Malhotra expects Healthpeak’s medical office building portfolio to continue to grow steadily, and he sees opportunities for increased synergies from the merger with Physicians Realty.The new Buy rating contrasts with the SA Quant rating of Hold and aligns with the average SA Analyst rating and average Wall Street rating, both at Buy. Healthpeak (DOC) stock rose 1.0% in early afternoon trading on Monday.
