Shares of actual property funding belief (REIT) Medical Properties (NYSE:MPW) are down over 8% on the time of writing after information got here out that UnitedHealth’s Optum (NYSE:UNH) deserted a deal to purchase Steward Well being’s doctor group.
Experiences from the Boston Globe say Optum is not pursuing the acquisition, which was supposed to assist Steward repay its money owed to Medical Properties Belief. A spokesman confirmed that Optum has stopped engaged on the settlement.
MPW has seen its shares wrestle over the previous couple of years as buyers grew frightened in regards to the high quality of its tenants. Issues had been made worse when Medical Properties slashed its dividend again in September of 2023, which fell from $0.29 to $0.15 per share. After that, Steward, which is Medical Properties’ greatest tenant, filed for Chapter 11 chapter, which poses a major monetary menace to 18.5% of REIT’s property.
Consequently, inventory merchants have pushed Medical Properties’ quick curiosity to 35% and may proceed to ship the inventory decrease.
Is MPW a Good Inventory to Purchase Now?
Turning to Wall Road, analysts have a Reasonable Promote consensus score on MPW inventory based mostly on 5 Holds and two Sells assigned prior to now three months, as indicated by the graphic beneath. After a 48% decline in its share worth over the previous yr, the typical MPW worth goal of $5.01 per share implies 17.19% upside potential.