Healthpeak Properties, Inc. (DOC), with a market cap of $13.4 billion, is a leading real estate investment trust (REIT) in the healthcare sector. Based in Denver, the company focuses on acquiring, developing, and managing a diverse portfolio of healthcare properties, including life science facilities, medical offices, and CCRCs.
Shares of Healthpeak Properties have significantly underperformed the broader market over the past 52 weeks. DOC has declined 2.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 28.9%. In 2024 alone, shares of DOC are down 3.5%, compared to the SPX's 11.2% gains on a YTD basis.
Zooming in further, DOC is also lagging behind the US Real Estate Ishares ETF's (IYR) 5.7% gains over the past 52 weeks.
Healthpeak Properties’ underperformance relative to the broader markets was primarily due to a delay in its pandemic recovery, resulting in stagnant earnings growth, lease terminations, and increased interest expenses amid high interest rates.
However, the stock saw a 2.5% surge after reporting Q1 earnings on April 25, which exceeded expectations, and further benefited from an upward revision in its 2024 earnings guidance post the successful merger with Physicians Realty Trust.
For the current fiscal year, ending in December, analysts expect DOC's EPS to grow marginally to $1.79. The company's earnings surprise history is promising. It beat the consensus estimates in all of the last four quarters.
Among the 17 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” and six “Holds.”
This configuration is more bullish than a month before, with seven analysts suggesting a "Strong Buy."
On May 16, Scotiabank's analyst Nicholas Yulico maintained an "Outperform" rating on Healthpeak Properties and raised the price target to $23. That implies a potential upside of 20.4% from the current price levels.
The mean price target of $21.85 represents a premium of 14.4% to DOC's current levels. The Street-high price target of $26 implies a potential upside of 36.1% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
