Analysts on Wall Street Lower Ratings for These 5 Stocks

03. Medical Properties Trust, Inc. (NYSE:MPW)

Price Reaction after the Downgrade: -0.24 (-3.42%)

On August 21, JPMorgan significantly adjusted its evaluation of Medical Properties Trust, Inc. (NYSE:MPW). The company’s rating has been downgraded from ‘Neutral’ to ‘Underweight’. With this shift, JPMorgan has revised the price target for Medical Properties Trust, Inc. (NYSE:MPW) downward. The previously set target of $9 has been adjusted to $7. This alteration in rating and price target reflects JPMorgan’s revised outlook on the investment potential of Medical Properties Trust, Inc. (NYSE:MPW). The shift to an ‘Underweight’ rating implies that the firm believes the stock’s performance might be below average compared to other investment opportunities. The adjusted price target of $7 indicates JPMorgan’s projection of where the stock’s value might stabilize.

Miller Value Partners Income Strategy made the following comment about Medical Properties Trust, Inc. (NYSE:MPW) in its second quarter 2023 investor letter:

“Medical Properties Trust, Inc. (NYSE:MPW) gained after it reported 1Q23 revenues of $350.2MM, -14.5% Y/Y, below consensus of $352.5MM, and Normalized Funds from Operations (FFO)/share of $0.37, -21.3% Y/Y, slightly below consensus of $0.38. The company’s CEO noted “The terms of recently announced transactions including Springstone, the acquisition by CommonSpirit of Steward’s Utah operations, Healthscope, and Prime, have valued our hospital investments near and in excess of our original purchase prices. This confirmation of our underwritten asset values by sophisticated market participants, as well as our existing liquidity and prudently planned debt structure, position us to have no debt maturities until 2025.” The REIT saw a modest uptick in leverage during the quarter, with the company’s Adjusted Net Debt to Annualized Earnings Before Interest, Taxes, Depreciation, and Amortization for Real Estate (EBITDAre) ratio standing at 6.5x as of quarter-end, compared to 6.4x as of 12/31/22. Management maintained its quarterly dividend of $0.29/share, or a 12.5% annualized yield. Management updated full-year 2023 (FY23) guidance for Normalized FFO/share of $1.56 (vs. prior guidance for $1.58), implying a P/FFO multiple of 5.9x, to account for the impact of announced deleveraging asset sales (and expected $1.4B in debt reduction).”