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RBC Capital Markets downgraded Welltower (NYSE:WELL) inventory to Sector Carry out from Outperform on Tuesday because the REIT’s “optimistic outlook is probably going already mirrored within the inventory’s valuation.”
WELL, which has climbed practically 35% year-to-date, has an AFFO a number of that trades at traditionally vast ranges vs. peer Ventas (VTR), in addition to different REITs like Digital Realty Belief (DLR), Prologis (PLD), amongst others, analyst Michael Carroll wrote in a observe.
“We imagine a part of WELL’s outperformance has been pushed by the dearth of enticing various investments,” Carroll mentioned. “This dynamic may shift if rates of interest proceed to stabilize.”
His Sector Carry out fee agrees with the SA Quant system score of Maintain and diverges from the typical sell-side analyst score of Purchase.
WELL edges down 0.2% in afternoon buying and selling.