Raymond James cuts CareTrust REIT stock price target on yield outlook

Raymond James has lowered its price target on CareTrust REIT (NYSE:CTRE) shares to $41 from $42 while maintaining an Outperform rating. The firm highlighted CareTrust's continued execution of its business plan, focusing on expanding investment opportunities within Senior Housing and seeking higher organic growth avenues. With $2.9 billion invested year-to-date and $1.2 billion in pipeline, CareTrust's expansion strategy shows promise, projecting earnings growth into 2027 and beyond.

The REIT, trading at $38.86, is currently undervalued according to InvestingPro analysis. Despite a slight dip in earnings per share (EPS) in the third quarter of 2026, revenue growth of 44% year-over-year and a 10-year consecutive dividend raise demonstrate strong performance. The firm also noted potential impact from recent equity issuance and lower initial yields, which could moderate near-term accretion.

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