Denver-based Healthpeak Properties, Inc. (DOC), valued at $15.9 billion by market cap, specializes in owning, operating, and developing premium real estate for healthcare discovery and delivery. Its portfolio, worth over $20 billion, includes properties for Lab, Outpatient Medical, and CCRC tenants.
The leading healthcare REIT’s shares have outperformed the broader market considerably over the past year. DOC has gained 38% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 36.8%. However, in 2024 alone, DOC stock is up 15%, while the SPX is up 25.7% on a YTD basis.
Narrowing the focus, DOC has also surpassed the Real Estate Select Sector SPDR Fund (XLRE), which has gained 27.1% over the past year and 9.6% in 2024.
On October 24, DOC announced its Q3 earnings, and its shares dipped more than 3% in the following trading session. It funds from operations of $320.8 million, or 45 cents per share, beating the 44-cent estimate. The company anticipates full-year funds from operations between $1.79 and $1.81 per share.
For the current fiscal year, ending in December, analysts expect DOC to report an FFO growth of 1.1% to $1.80 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 19 analysts covering DOC stock, the consensus rating is a “Moderate Buy.” That’s based on 12 “Strong Buy” ratings, one “Moderate Buy,” and six “Holds.”
This configuration is more bullish than a month ago, when 11 analysts advocated a “Strong Buy” for the stock.
Recently, Mizuho Financial Group, Inc. (MFG) analyst Vikram Malhotra reiterated a “Buy” rating on Healthpeak Properties, citing the company’s strategic growth potential and robust internal expansion. Management’s focus on external growth, a projected 5-7% FFO increase by 2026-2027, and promising Life Sciences and Medical Office segments support this outlook.
The mean price target of $25.72 represents a 13% upside from DOC’s current price levels. The Street-high price target of $33 suggests an upside potential of 45%.
On the date of publication, Kritika Sarmah 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.
