Sabra's Texas Exits Removes A Year-Long Overhang

Canaccord's Paul Morgan reiterated Sabra Health Care REIT SBRA's Hold rating with a price target of $23.

Sabra announced Tuesday it will sell its Forest Park Dallas, which Morgan praised. "Sabra has been working on realizing its "Texit" for months, and today's announcement that the sale of Forest Park Medical Center Dallas is a welcome positive," stated the analyst. This will mark a "full exit" from Sabra's struggling Texas hospital investments by midyear.

The Canaccord analyst is happy to see the company shifting its focus on the Sabra's "$200 million senior housing acquisition pipeline."

Due to the beneficial shift, the analyst raised 2017 EBITDA estimates from $225.0 million to $227.10 million.