VTR - Ventas cut to neutral at BofA citing mixed views on New Senior acquisition

Victoriia Kovryha/iStock via Getty Images Early this week, Ventas ([[VTR]] +0.2%) agreed to acquire New Senior Investment ([[SNR]] +0.4%) in an all-stock deal worth ~$2.3B. The transaction is expected to close in H2 2021 and add ~$0.09 – 0.11 per share to Ventas’s normalized funds from operations on a full-year basis. Citing positive views on initial financial accretion, Bank of America analysts led by Joshua Dennerlein have downgraded Ventas to neutral from buy, noting their concerns over weaker demographics. The price target lowered to $62.00 from $66.00 per share implies a premium of ~4.7%. The analysts are optimistic over the upside linked to COVID recovery and long-term trends in demographics, but they cite the potential dilution of Venta's portfolio quality and the rise in its leverage after the acquisition. Seeking Alpha contributor Trapping Value describes three key factors the investors on both sides of the deal should consider in the wake of

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Ventas cut to neutral at BofA citing mixed views on New Senior acquisition