Welltower Price Target Lowered on Higher Interest Rates and FX Moves

RBC Capital analysts lowered their price target on Welltower Inc. (NYSE:WELL) to $79 from $96 to reflect higher interest rates and FX moves.

The analysts reduced their earnings and NAV estimates to reflect the average BBB bond yield jumping 80 bps since the end of Q2/22 along with the US dollar significantly strengthening. Management noted higher interest rates and FX moves reduced its quarterly FFO run-rate by approximately $0.035 per share, including $0.005 per share in Q3/22 and $0.03 per share in Q4/22 versus its prior expectation.

The analysts lowered their FFO estimates to $3.37 per share (down $0.04) in 2022, $3.70 per share (down $0.20) in 2023, and $4.32 per share (down $0.28) in 2024.