Price target and rating change
Evercore ISI raised its target price for Ventas Inc. (NYSE: VTR) to $90.00 from $86.00 and maintained an Outperform rating on the healthcare real estate investment trust. The new target implies upside relative to Ventas’ then-current share price of $82.55. InvestingPro data referenced in the underlying reporting shows the stock is trading above its Fair Value and near its 52-week high of $82.80.
Operational drivers
The analyst move follows Ventas’ release of fourth-quarter 2025 operational figures that beat expectations by $0.01. Evercore highlighted the Senior Housing Operating Portfolio - SHOP - as the primary contributor to the outperformance. The Q4 results form part of the backdrop for a roughly 40.08% price return for Ventas over the past year.
Updated earnings and cash-flow forecasts
Evercore ISI set its funds from operations (FFO) projections under Ventas’ revised adjusted FFO definition at $3.86 per share for 2026 and $4.25 for 2027. On an adjusted funds from operations (AFFO) basis, the firm’s estimates are $3.04 for 2026 and $3.33 for 2027. Those forecasts feed into the firm’s investment thesis and valuation framework.
Balance-sheet and shareholder returns
The REIT is reported to have a market capitalization of $39.49 billion and a dividend yield of 2.52%, according to InvestingPro data cited in the reporting. Ventas has maintained dividend payments for 28 consecutive years in that dataset.
Investment thesis as summarized by Evercore
Evercore ISI’s investment case for Ventas centers on several elements: organic growth within the SHOP portfolio; increased retained cash flow available for reinvestment; a trajectory of declining leverage; and the potential for low double-digit compound annual growth in AFFO per share. The firm also noted that Ventas has identified sizable, accretive acquisition opportunities and is using equity to match-fund external growth initiatives, a practice Evercore expects to support both deleveraging and earnings accretion.
Recent reported results
In separate reported metrics for the quarter, Ventas posted earnings per share of $0.15, beating the consensus forecast of $0.10, a 50% surprise. Revenue for the period came in at $1.57 billion, ahead of the anticipated $1.5 billion by 4.67%. The company’s quarter-end figures and operational commentary contributed to positive investor sentiment following the announcement.
What this means for stakeholders
For investors and market participants focused on healthcare real estate and REITs, Evercore’s revised target and the company’s reported results reinforce a narrative of SHOP-driven operational improvement and potential cash-flow growth. The combination of updated FFO/AFFO forecasts and ongoing acquisition activity will be central to assessments of Ventas’ ability to deliver on Evercore’s expectations.
Note: The article presents reported figures and analyst projections as provided; it does not attempt to evaluate future outcomes beyond the stated forecasts.