Deutsche Bank upgraded LTC Properties (NYSE: LTC) to Buy from Hold and raised its price target to $55 from $38, a 45% increase, following a non-deal roadshow in Chicago. The firm cited the real estate investment trust’s Senior Housing Operating Platform (SHOP) strategy as a key driver of the upgrade.
RBC Capital also raised its rating on LTC Properties, moving from Sector Perform to Outperform, while lifting its price target to $45 from $41. The stock was trading at $40.53 at the time of the upgrades, below Deutsche Bank’s new target.
Deutsche Bank adjusted its financial estimates for LTC Properties, reflecting the shift toward SHOP. Funds from operations per share were trimmed slightly to $2.78 for 2026 from $2.80, but raised to $2.89 for 2027 from $2.67 and introduced at $3.23 for 2028, implying 11.8% growth. Funds available for distribution per share were adjusted to $2.84 for 2026 from $2.95, increased to $2.87 for 2027 from $2.80, and introduced at $3.09 for 2028, implying 7.7% growth.
The SHOP strategy is expected to account for roughly 50% of total net operating income by year-end 2026 and 75% by year-end 2028, according to management targets. Deutsche Bank highlighted improved initial spreads on 2027 and 2028 acquisitions as additional growth drivers.
LTC Properties reported adjusted earnings per share of $0.56 for the second quarter of 2026, beating the $0.4975 estimate, though revenue fell short at $25.99 million against an $87.4 million forecast. The company has a market capitalization of $2.18 billion, a P/E ratio of 14.71, a PEG ratio of 0.31, and a dividend yield of 5.63%.
