RBC Capital Lowers Medical Properties Trust (MPW) Price Target to $4.50

Medical Properties Trust, Inc. (NYSE:MPW) is one of Goldman Sachs’ top penny stock picks. On June 30, RBC Capital reiterated its “Sector Perform” rating on the company’s stock. RBC lowered its price target for the stock from $5.00 to $4.50 and appended a “Speculative Risk” qualifier to the rating.

According to RBC, the adjustment is explained by two factors: the recent joint venture debt refinancing and higher operating expense leakage due to vacant assets. That said, RBC analysts anticipate that Medical Properties Trust’s stock will likely remain volatile in the coming period due to several ongoing uncertainties. These include several tenant situations (referring to challenges related to tenants like Steward Health Care); the company’s ability to monetize non-revenue-generating assets; and elevated leverage metrics.

Despite the lowered price target, RBC emphasized that its stance on Medical Properties Trust’s stock performance relative to the overall sector remains neutral. This explains the “Sector Perform” rating.

Medical Properties Trust, Inc. (NYSE:MPW) is a real estate investment trust (REIT). It owns and leases hospital facilities, including acute care, rehabilitation, and behavioral health hospitals. The company operates across nine countries, including the U.S., U.K., Germany, and Spain.

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Disclosure: None. This article is originally published at Insider Monkey.