
CareTrust REIT (CTRE) Stock Forecast & Price Target
CareTrust REIT (CTRE) Analyst Ratings
Bulls say
CareTrust REIT's planned $817 million merger with Care REIT is viewed positively as it is expected to lead to immediate accretion, enhancing the company's financial position. The transaction also presents an opportunity for CareTrust to utilize its under-leveraged balance sheet effectively, potentially increasing its capacity for future growth. This strategic move into the UK market could diversify CareTrust's portfolio and strengthen its revenue-generating potential in the healthcare real estate sector.
Bears say
CareTrust REIT may face a challenging outlook due to potential disruptions and headwinds experienced by its tenants, which could hinder earnings growth. The company's initial lease yield of 8.1% appears low when compared to the approximately 10% cash lease yields achieved by other U.S. REIT peers, indicating a competitive disadvantage in generating higher rental revenues. Additionally, the presence of tax leakage, with repatriation of profits potentially impacting investment yield by 50 to 100 basis points, further compounds the financial pressures faced by the company.
This aggregate rating is based on analysts' research of CareTrust REIT and is not a guaranteed prediction by Public.com or investment advice.
CareTrust REIT (CTRE) Analyst Forecast & Price Prediction
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