Healthcare Roundup – Omega Health buys 24 facilities for $510M; Align Tech up 13% as analysts view Q4 2020 results favorably

Published on: February 4, 2021
Author: Amy Liu

Omega Health buys 24 facilities for $510M, FFO stays stable in Q4

Omega Healthcare (NYSE:OHIacquires 24 senior living facilities from Healthpeak Properties (NYSE:PEAK) for $510M on Jan. 20, 2021 and includes the assumption of an in-place master lease with Brookdale Senior Living (NYSE:BKD).

The master lease has 2021 contractual rent of $43.5M with a 2.4% annual escalator. The 24 facilities represent 2,552 operating units.

Q4 adjusted FFO per share of 81 cents misses the average analyst estimate of 80 cents; compares with 82 cents in Q3 and 78 cents in the year-ago quarter.

Q4 revenue of $263.8M vs. consensus of $216.9M and vs. $119.2M in Q3 and $246.7M in the year-ago quarter.

Q4 expenses were $192.5M vs. $189.3M a year earlier.

Daybreak portfolio is transitioning its portfolio pursuant to a forbearance agreement.

Collected more than 99% of Q4 contractual rent and mortgage payments (excluding Daybreak) in Q4; also collected more than 99% of January contractual rent and mortgage payments (excluding Daybreak).

OHI is still not providing guidance due to the pandemic.

Align Tech up 13% as analysts view Q4 2020 results favorably

Yesterday, Align Technology (NASDAQ:ALGN) reported Q4 2020 financials that came ahead of consensus estimates. With many analysts issuing favorable reviews on the company’s outlook, the stock has climbed ~13.4% today.

Maintaining the overweight rating, Piper Sandler has raised the price target to $700 from $610 per share, implying ~28.2% upside the previous close.

The analyst Jason Bednar cites ‘secular tailwinds supporting rapid clear aligner market growth along with rising consensus estimates and building brand momentum.’

However, Stifel analyst Jonathan Block highlights the concerns of ASP declines arguing the rising gross margins have minimized the impact on gross profit. The firm has upped the price target to $650 from $600 and reiterates the buy rating.

Keeping the outperform rating and a price target of $630, Credit Suisse analyst Erin Wilson Wright positively views the company initiatives such as consumer marketing, buyback/switch program, and iTero scanner placements.

Calling the stock as ‘extremely expensive’, CFRA Research has upgraded Align to sell from strong sell.

Despite the accelerated insider selling by the company CEO, the firm has raised the price target to $468 from $405, expecting ‘the momentum, easy comps in 1H21, and transient tailwinds’ to lift shares in the near-term.

Align was among the top-performing stocks in the S&P 500 in 2020.

Johnson & Johnson applies for emergency use OK for COVID-19 vaccine

Johnson & Johnson (NYSE:JNJ) has applied to the FDA for emergency use authorization for its single-shot COVID-19 vaccine.

If approved, it would mark the third such vaccine to get an emergency OK from the Food and Drug Administration, joining the vaccines from Pfizer/BioNTech and Moderna.

Last week, Johnson & Johnson’s vaccine was found to be 66% effective in protecting against the virus in a global trial.

The vaccine is eagerly anticipated as the single-shot regimen points toward a far simpler distribution path than that of the vaccines from Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA), each of which calls for two shots given weeks apart.

The J&J vaccine will also ship at 36-46 degrees Fahrenheit, vs. Pfizer’s ultra-cold shipping (-112 to -76 degrees) or Moderna’s (-13 to 5 degrees).

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