Why Medical Properties Trust Stock Sank by More Than 5% Today
Struggling healthcare real estate investment trust (REIT) Medical Properties Trust (NYSE: MPW) suffered yet another body blow on Wednesday. An analyst trimmed his price target on the stock, inspiring the market to sell out of it to the point where it lost more than 5% of its value. That was a notably steeper fall than the 0.6% slip of the S 500 index that day.
Before market open, Truist Securities' Michael Lewis cut his price target by one-third. He now feels that Medical Properties Trust is worth only $4 per share, well down from his preceding $6 estimation. The price chop didn't affect the analyst's view of the REIT -- he still rates it as a hold.
The reasoning behind Lewis's move wasn't immediately clear. However, he's not the only prognosticator getting more bearish on Medical Properties Trust. Last week his peer Stephen Manaker at Stifel (NYSE: SF) also enacted a price-target cut, albeit a less drastic one. He shaved $0.50 off his level to arrive at that same $4 per-share target. He likewise maintained his hold recommendation.
Source Fool.com
