JPMorgan analyst Michael W. Mueller upgraded Ventas Inc. (VTR) from Neutral to Overweight, signaling a more positive outlook for the healthcare REIT. The firm also raised its December 2025 price target for Ventas shares to $72 from $70. This upgrade reflects a reassessment of the company's performance and market position.
Mueller cited robust internal and external growth as key drivers for the upgrade. This includes double-digit same-store net operating income (NOI) gains and a steady pace of acquisitions, which are contributing to a positive outlook for normalized FFO per share growth. These factors indicate strong operational momentum within Ventas's portfolio.
The analyst noted that Ventas appears more attractively valued compared to its peer Welltower, especially on an implied cap rate basis, despite potentially slightly lower growth potential. This valuation perspective, combined with the company's continued success in external growth within a broader REIT sector slowdown, positions Ventas as a relative outperformer.
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