Peel Hunt remains bullish on Primary Health Properties PLC (LON:PHP) following the FTSE 250-listed firm’s recent capital markets day in Dublin.
The City broker reiterated a ‘buy’ stance on the stock with a price target of 125p, with the shares currently trading at 110p each.
READ: Primary Health Properties expands with £22.8mln purchase of keyworker accommodation unit
In a note to clients, Peel Hunt’s analysts said: “The Irish primary care sector has many of the same fundamentals as the UK, as well as higher yields and lower financing costs.
“A significant development pipeline means Ireland will be a big growth opportunity for PHP over the coming years.”
They added: “The company now owns eight assets and we estimate that each additional purchase will add almost 1% to EPS.”
The analysts concluded: “The shares currently yield 4.6% and given the 22-year unbroken record of increasing dividends and the robust income characteristics, we retain our Buy recommendation.”