what happened
One of the standout stocks in Tuesday’s real estate investment trust (REIT) universe is medical property trust (MPW 5.92%)Encouraged by not one but two price target hikes by analysts, the health care property specialist confirmed the stock was up nearly 6% on the day. S&P 500 0.2% skid on the dust index.
So what
both before opening credit suisse Prophet Tayo Okuyamaya and his companion Michael Lewis Truthist Stocks become increasingly bullish on Medical Properties Trust. For the former, he raised his price target from $11 to $13, and for the latter he raised it to $14 (previous level: $13).
Both analysts maintained their hold recommendations on REIT stocks and raised their price targets slightly, but these twin moves show the company’s appeal.
It’s been a struggle for years, but as a hospital owner, it operates in a segment that isn’t subject to the whims of consumers (as is the case with most REITs focused on retail, office, or residential ). It is also a major operator at a time when the U.S. population is aging across the board, and as the country ages, it will need more healthcare (all things being equal).
It also pays a high-yielding dividend of over 9% at the moment. Even in the normally generous REIT space, this is a very good thing.
So
This dividend alone should maintain some level of investor interest in Medical Properties Trust. While a good strategy for those looking to invest in this busy segment, there are larger REITs focused on industries with greater potential or significantly greater size.
Eric Volkman has no positions in any of the mentioned stocks. The Motley Fool has no positions in any of the companies mentioned. The Motley Fool’s U.S. headquarters has a disclosure policy.
