Analysts Just Downgraded These Three REITs
Portfolio Pulse from Ethan Roberts
Analysts have downgraded three REITs: Weyerhaeuser Co. (WY), PotlatchDeltic Corp. (PCH), and Welltower Inc. (WELL). Weyerhaeuser and PotlatchDeltic were downgraded by Raymond James analyst Buck Horne from Strong Buy to Market Perform due to lower building material prices, slower home sales, and higher interest rates. Welltower was downgraded by RBC Capital Markets analyst Michael Carroll from Outperform to Sector Perform, despite raising the price target from $92 to $97, following positive developments and earnings that beat estimates.
November 30, 2023 | 4:49 pm
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NEGATIVE IMPACT
PotlatchDeltic was downgraded from Strong Buy to Market Perform by Raymond James, citing the same concerns as for Weyerhaeuser. The downgrade comes despite a mixed Q3 earnings report with a revenue beat.
The downgrade, especially following a revenue beat, may confuse investors but reflects broader market concerns that could pressure the stock price.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 80
NEGATIVE IMPACT
Weyerhaeuser was downgraded from Strong Buy to Market Perform by Raymond James, with no price target given. The downgrade follows a Q3 earnings miss and concerns over lower building material prices and market conditions.
The downgrade by a major analyst and the recent earnings miss are likely to negatively impact investor sentiment and the stock price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Welltower was downgraded from Outperform to Sector Perform by RBC Capital Markets, but the price target was raised from $92 to $97. The downgrade is curious given Welltower's positive Q3 results and recent developments.
The upgrade in price target despite the downgrade suggests a nuanced view that may limit the negative impact on the stock price.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 70