Analyst Foresees Challenges For Medical Properties Trust, Expects 35% Dividend Cut
Portfolio Pulse from Lekha Gupta
RBC Capital Markets analyst Michael Carroll has lowered the price target for Medical Properties Trust Inc (MPW) from $12 to $10 and added a Speculative Risk qualifier to the Outperform rating. This follows MPW's Q2 FY23 results, which missed estimates. Carroll also expects a 35% dividend cut to $0.75 per share and a $60 million rent cut in Q1 FY24. He believes MPW can address its liquidity issues by improving collections and will need to address $1.4 billion in debt maturities in Q1 2025.

August 14, 2023 | 6:29 pm
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MPW's price target has been lowered from $12 to $10 by RBC analyst Michael Carroll, who also expects a 35% dividend cut. The company's Q2 FY23 results missed estimates, and it faces liquidity issues and $1.4 billion in debt maturities in Q1 2025.
The lowered price target, expected dividend cut, missed Q2 FY23 results, and upcoming debt maturities all contribute to a negative short-term outlook for MPW. The company's ability to address its liquidity issues and manage its debt will be critical factors in its performance.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100