Morgan Keegan Raises Estimates on Nationwide Health Properties (NHP)

Morgan Keegan is out with a research report this morning, where it reiterates its Outperform rating on Nationwide Health Properties NHP; it has a $42.75 price target on the stock. The MK analysts cited the company’s recent earnings report, which was ahead of their estimates. Key drivers for the outperformance included NOI generated from recent medical office building acquisitions and acquisitions totaling $182 million with a 9.1% initial yield, all in excess of their estimates. The analysts are raising estimates on the name. Their 2010 FFO estimate goes from $2.19 to $2.25 (revised guidance $2.23-$2.25) and their FAD estimate goes from $2.14 to $2.18 (revised guidance $2.17-$2.19). They are also raising their 2011 FFO estimate from $2.28 to $2.32 and their FAD estimate from $2.24 to $2.25. The MK analysts added that they believe that the company's guidance could prove to be conservative, as they have been the past two quarters, given the company's NOI and acquisition momentum.