Truist Trims Price Target on American Healthcare REIT, Maintains Buy Rating Amid Sector Recalibration
In a targeted adjustment to its real estate investment trust coverage, Truist Securities analyst Michael Lewis revised the firm's price objective on American Healthcare REIT (NYSE: AHR) to $52 from $53, maintaining a Buy rating on the stock. The update, reported Friday, reflects a nuanced sector review as analysts model performance into 2026.
Truist's broader sector note struck a measured tone, adopting a "Neutral" stance on REITs for 2026. The firm observed that fundamentals are gradually improving, supported by slowing new supply and steady demand for high-quality assets. However, Lewis noted that valuations across the sector are "not particularly cheap," prompting selective positioning.
The firm expressed relative optimism for healthcare, industrial, strip retail, gaming, and lodging REITs. It remains neutral on manufactured housing, multifamily, self-storage, and triple-net lease properties, while maintaining caution on mall and office sectors—areas still grappling with post-pandemic structural shifts.
In a separate analysis, UBS analyst Michael Goldsmith reaffirmed a more bullish $56 price target and Buy rating on AHR, suggesting divergent views on the healthcare-focused trust's near-term trajectory.
American Healthcare REIT owns and operates a diversified portfolio of clinical healthcare real estate, including medical office buildings, senior housing, and other facilities—a segment generally viewed as defensive due to consistent demographic-driven demand.
Sarah Chen, Portfolio Manager at Horizon Advisors: "A one-dollar target reduction is largely a technical adjustment. The maintained Buy signal is key. Healthcare REITs like AHR offer essential asset exposure, which provides a cushion during economic uncertainty."
Marcus Doyle, Independent Market Commentator: "This is classic analyst window-dressing. They tweak numbers to look busy while ignoring the elephant in the room: soaring interest rates that crush leveraged real estate models. The entire sector faces headwinds that a mere rating hold doesn't address."
Dr. Evelyn Reed, Healthcare Real Estate Consultant: "The dual ratings highlight the sector's stability. UBS's higher target may factor in longer-term demographic tailwinds—aging populations ensure sustained demand for healthcare properties, making REITs like AHR strategic long-term holds."
Analyst price target changes are routine adjustments based on updated financial models and sector outlooks. Investors are advised to consider such revisions as part of a broader investment thesis.