Citizens JMP Maintains Market Perform Rating on Omega Healthcare (OHI)

Omega Healthcare Investors, Inc. (NYSE:OHI) is one of the most undervalued stocks. On June 9, Citizens JMP maintained a Market Perform rating on Omega Healthcare. The decision reflects improving fundamentals, including expanding coverage ratios and more favorable Medicaid trends in priority regions.

Omega Healthcare is benefitting from favorable momentum, analysts observed, citing a senior housing operator’s improving operational performance. In light of positive developments, analysts still point to unresolved issues tied to PACS Group, Omega Healthcare’s fifth-largest operator. The group is facing scrutiny over potential billing violations, which could pose risks for the company. Analysts believe the matter may take years to resolve, though rent flows are likely to continue in the interim.

Citizens JMP Maintains Market Perform Rating on Omega Healthcare (OHI)

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According to analysts, the issues surrounding PACS Group may encourage Omega Healthcare Investors, Inc. (NYSE:OHI) to adopt a strategic acquisition plan focused on accelerating FFO growth and minimizing exposure to the troubled operator, thereby reducing overall risk.

Omega Healthcare is a real estate investment trust that supports the long-term healthcare sector by funding skilled nursing and assisted living facilities in the United States and the United Kingdom.

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