RBC Capital Raises CareTrust REIT Price Target to $36, Maintains Outperform Rating

RBC Capital raised the price target on CareTrust REIT to $36 from $32 and maintains an Outperform rating. The company has been actively deploying capital and has a significant investment pipeline. The analyst believes the company will continue to grow its business and expects strong results in the future.

CareTrust REIT (NASDAQ: CAAS) reported its second-quarter 2025 earnings, exceeding analysts' expectations and sparking a positive market reaction. The company's earnings per share (EPS) of $0.35 surpassed the forecasted $0.34, marking a 2.94% positive surprise. Revenue reached $112.47 million, significantly exceeding the anticipated $80.39 million, reflecting a 39.91% surprise. Following the earnings announcement, CareTrust's stock saw a premarket increase of 0.89% to $32.84 [1].

Key Takeaways
- CareTrust REIT's EPS and revenue both exceeded expectations for Q2 2025.
- The company raised its annual guidance for normalized FFO and FAD per share.
- CareTrust's stock price experienced a slight increase in premarket trading.
- The company continues to expand its presence in the UK care home market.

Market Reaction
The positive earnings report was reflected in the stock's premarket performance, with a 0.89% increase to $32.84. RBC Capital Markets recently raised its price target on CareTrust REIT to $36 from $32, maintaining an Outperform rating. The analyst believes the company will continue to grow its business and expects strong results in the future [2].

Outlook & Guidance
CareTrust REIT has raised its annual guidance for normalized FFO and FAD per share to a range of $1.77-$1.79. The company is targeting growth through strategic acquisitions and exploring opportunities in the US and UK markets. It expects to realize synergies of around $5 million, mostly beginning in Q1 next year. Analysts maintain a strong bullish consensus on the stock, with a "Strong Buy" rating of 1.33 out of 5, and revenue growth forecasts of 37% for FY2025 [1].

Risks and Challenges
Potential market saturation in the care home sector, macroeconomic pressures, integration challenges with recent acquisitions, regulatory changes in healthcare funding, and competitive pressures from other REITs in the sector are among the risks the company faces [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-caretrust-reit-beats-q2-2025-forecasts-boosts-guidance-93CH-4178967
[2] RBC Capital Markets