10:05 AM EDT, 04/26/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our target by $2 to $23 on a forward P/FFO of 12.5x our 2024 FFO estimate, a discount to DOC's 10-year average multiple (15.2x) as headwinds remain within the lab industry. We raise our 2024 FFO estimate by $0.01 to $1.80 and keep 2025's at $1.88. DOC posted Q1 2024 FFO of $0.45 vs. $0.42, a penny consensus beat. Same-store cash NOI was strong, rising 4.5% Y/Y, driven by Continuing Care Retirement Communities (CCRC, +26.6% Y/Y), Lab (+2.7% Y/Y), and Outpatient Medical (OM, +2.6% Y/Y). Robust CCRC performance was driven by strong pricing power with REVPOR rising 6.6% Y/Y as occupancy jumped 210 bps to 85.1%. Lab continues to face headwinds from significant new supply growth, with occupancy down 220 bps Y/Y to 96.0%, but demand should improve in 2H 2024 as life sciences funding improves while new supply growth moderates. OM demand remains healthy with occupancy rising 90 bps Y/Y to 92.0%. We believe current valuation is attractive, with shares trading at a 30% discount to their 10-year average multiple.