Analyst Steve Manaker at Oppenheimer has launched coverage of newly public Community Healthcare Trust with an 'outperform' rating and a price target of $21. A key in his analysis is the type of properties CEO Tim Wallace and his team are targeting: "The key for us is not just management's ability to underwrite the real estate but also the importance of a tenant's place in the local healthcare ecosystem." Community Healthcare Trust (Ticker: CHCT) is changing hands this morning at about $19.10.
Manaker's colleague Mohan Naidu has begun covering shares of population health management company Healthways (Ticker: HWAY) with a neutral rating. Among his concerns are how the exit of former CEO Ben Leedle might hurt contract renewals and the long-term impact of health insurance exchanges on Healthways' work with large employers.
The directors of LifePoint Health earlier this month voted to set up a $150 million stock buyback plan that triples the hospital company's remaining repurchase capacity.
The new plan is valid for 18 months and piggybacks onto an existing $150 million plan that will expire Oct. 1. About half of that dollar amount had been used as of early this month.
In the first quarter of this year, the company bought back almost $34 million of its own shares (Ticker: LPNT), which have risen 4 percent so far this year. The $225 million still available for repurchases amounts to almost 7 percent of the company's shares outstanding.
HCA Holdings' finance team has saved the company a few dollars by renegotiating two big loans with a group of lenders led by Bank of America. The Nashville-based hospital giant (Ticker: HCA) has replaced a $482 million term loan that would have expired next May and a $717 million facility due next February with a single $1.4 billion credit line that will mature in mid-2020. The new facility also comes with a lower interest rate.
Several investment banks have launched coverage of newly public Community Healthcare Trust with positive outlooks. Giving 'buy' ratings to the real estate investment trust are analysts at SunTrust Robinson Humphrey, Janney Montgomery Scott and Sandler O'Neill. SunTrust's researchers have a $22 target and Sandler a $23 target for the stock (Ticker: CHCT), which went public four weeks ago at $19.
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