Analyst Ratings February 17, 2026

Cantor Fitzgerald Lifts Healthcare Realty Trust Target to $21, Citing Operational Progress

Analyst maintains Overweight rating after fourth-quarter and full-year 2025 results that show higher same-store NOI, improving occupancy and a constructive 2026 FFO outlook

By Nina Shah HR
Cantor Fitzgerald Lifts Healthcare Realty Trust Target to $21, Citing Operational Progress
HR

Cantor Fitzgerald increased its price target on Healthcare Realty Trust (HR) to $21 from $19 while keeping an Overweight rating. The new target implies roughly 16.3% upside from the recent share price, with the company reporting modest FFO growth, improved occupancy and a 2026 FFO guidance that slightly outpaces prior estimates and consensus.

Key Points

  • Cantor Fitzgerald raised its price target on Healthcare Realty Trust to $21 from $19 and retained an Overweight rating; the new target implies about 16.3% upside from a recent price of $18.05.
  • Operational results showed same-store NOI growth of 5.5% in Q4 and 4.8% for full-year 2025, occupancy improvement of 103 basis points to 92.1%, and Q4 FFO of $0.40 per share in line with expectations.
  • Management's 2026 guidance calls for FFO of $1.58 to $1.64 per share, reflecting approximately 5% core growth that offsets the effects of asset sales and deleveraging; the company paid dividends for 34 consecutive years and yields 5.35%.

Cantor Fitzgerald raised its price target on Healthcare Realty Trust to $21 from $19 and left its rating at Overweight. The revised target equates to an approximate 16.3% upside from the stock's recent price of $18.05, with the shares trading close to a 52-week high of $18.97.

The firm pointed to Healthcare Realty Trust's fourth-quarter 2025 and full-year 2025 results as evidence of structural improvements across processes, personnel, earnings growth potential and the balance sheet. In the fourth quarter, the company reported funds from operations of $0.40 per share, which matched expectations.

Despite those operational gains, the company was not profitable over the trailing twelve months, with diluted earnings per share of -$0.71. Still, same-store net operating income rose 5.5% in the fourth quarter and 4.8% for the full year 2025, and portfolio occupancy improved by 103 basis points to finish the year at 92.1%.

Healthcare Realty Trust continued a long-standing dividend record, paying distributions for 34 consecutive years and offering a current yield of 5.35%.

Looking to 2026, management projects funds from operations in a range of $1.58 to $1.64 per share. That guidance modestly exceeds prior internal estimates and consensus expectations, reflecting roughly 5% growth from the core business while recognizing the offsetting effects of asset sales and deleveraging.

The stock has returned 16.41% on a total return basis over the past year. At the same time, some valuation metrics indicate the shares may be trading at a premium to fair value. Cantor Fitzgerald's new target is based on applying a 16.8 multiple to its 2026 adjusted funds from operations estimate.

An overall Financial Health score is indicated as "FAIR," and technical indicators point to the stock being in overbought territory. For investors seeking more detailed metrics and additional insights, a Pro Research Report with further analysis and supplemental ProTips is available to subscribers.

In separate disclosures for the quarter, Healthcare Realty reported earnings per share of $0.04 for Q4 2025, materially above the prior analyst projection of $0.002. Revenue for the quarter also slightly exceeded expectations. Those results contributed to a favorable market reaction and underscore the company's ability to surpass near-term consensus forecasts.

Overall, the analyst upgrade and target increase reflect a combination of recent operational momentum, resilient dividend policy and a 2026 outlook that anticipates modest core growth despite asset sales and balance sheet actions. Investors should weigh the positive operational indicators against the noted lack of profitability on a trailing basis and mixed valuation signals.

Risks

  • The company reported a negative diluted EPS of -$0.71 over the trailing twelve months, indicating it was not profitable on a GAAP basis during that period - this affects equity investors and sectors sensitive to profitability metrics.
  • Valuation signals suggest the stock may be trading above fair value and technical indicators point to overbought conditions, which could increase downside risk for equity market participants.
  • Near-term FFO growth is partially offset by asset sales and deleveraging, introducing execution and timing risk around the balance sheet actions and their impact on cash flow and investor returns.

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