Analysts on Wall Street Lower Ratings for These 5 Stocks

In this article, we discuss the 5 stocks receiving downgrades from analysts. If you want to see more such stocks on the list, go directly to Analysts on Wall Street Lower Ratings for These 10 Stocks.

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

Price Reaction after the Downgrade: -0.12 (-1.63%)

On August 31, Medical Properties Trust, Inc. (NYSE:MPW), a significant player in the healthcare real estate sector, encountered a notable shift in its market position. This transformation was initiated by a downgrade in its stock rating by Mizuho, a strategic move that marked a substantial alteration in perspective regarding the company’s prospective performance. Formerly categorized as a “Buy,” a designation indicating positive expectations for the stock’s potential, Medical Properties Trust, Inc. (NYSE:MPW) rating was revised to “Neutral” by Mizuho. This adjustment highlights a more balanced viewpoint, implying that the stock’s growth trajectory may align more with prevailing market trends. The immediate market response became apparent as the stock’s price experienced a decline of -1.6%, ultimately reaching $7.22.

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).”