Jefferies Upgrades Omega Healthcare Investors To Buy (OHI)

Analysts at Jefferies & Company upgrade Omega Healthcare Investors OHI to “buy” from “hold.” The analysts at Jefferies also increased its price target from $23.00 to $26.00. Jefferies & Company writes, “We are upgrading OHI to Buy given: 1) our favorable view of the company's earnings outlook; 2) attractive valuation; 3) safe 6.6% dividend yield with capacity to grow dividend; and 4) a better-than-initially expected outlook for the company's SNF portfolio.” Analysts are increasing 2010, 2011, and 2012 AFFO/share estimates to reflect 2Q10 results as well as revised acquisition and financing assumptions. Jefferies initially worried that states would resort to severe Medicaid cuts in order to balance their budgets; however, this has not been the case so far. Shares of OHI began today's trading session priced at $21.52.