Deutsche Bank upgraded LTC Properties to Buy from Neutral and raised its price target to $55 from $38, citing accelerating progress in the company’s senior housing operating platform (SHOP) strategy. RBC Capital similarly lifted its rating to Outperform and target to $45 from $41, following a non-deal roadshow in Chicago that featured LTC’s management team.
The bank’s upgrade comes as LTC Properties’ stock trades at $40.53, giving the company a market capitalization of approximately $2.18 billion. Deutsche Bank’s revised valuation reflects confidence in LTC’s ability to expand its SHOP exposure faster than previously expected, with management targeting roughly 50% of total net operating income from SHOP by the end of 2026 and 75% by 2028. Improved initial spreads on 2027 and 2028 acquisitions and higher same-store NOI growth are cited as key drivers.
Deutsche Bank also adjusted its funds from operations (FFO) per share estimates for 2026 to $2.78 from $2.80, raised its 2027 forecast to $2.89 from $2.67, and introduced a 2028 estimate of $3.23. Funds available for distribution (FAD) per share were trimmed to $2.84 from $2.95 for 2026, increased to $2.87 from $2.80 for 2027, and set at $3.09 for 2028. The bank highlighted an implied FFO per share growth rate of 11.8% and FAD per share growth of 7.7% by 2028, alongside a PEG ratio of 0.31, P/E of 14.71, and a dividend yield of 5.63%.
RBC Capital’s upgrade followed similar logic, with the firm noting LTC’s strategic pivot toward SHOP is materializing ahead of schedule. The bank raised its 2026 revenue estimate to $25.99 million from a prior $87.4 million consensus, though adjusted earnings per share for the second quarter of 2026 came in at $0.56, beating Wall Street’s $0.4975 estimate. LTC’s stock has underperformed in recent sessions, closing at $40.53, down 0.4% on the day.
