Stifel Canada raised its price target on the units of DRI Healthcare Trust (DHT-UN.TO) by $1.00 to $23.00 and maintained its buy rating.
Analyst Justin Keywood noted DRI reported "very strong" first-quarter results: total income of US$50.6 million was a 14% beat versus Stifel Canada's US$44.4 million estimate, and represented overall growth of 15% y/y.
"We highlight adj. EBITDA margins on Total Income (104.3%) and on Cash Receipts (90.4%) as highly impressive and reflect the structurally higher margin profile of the business following the manager internalization last year."
Keywood also flagged Orserdu, an oral hormonal therapy, and a core royalty interest for DRI that faces near-term competitive pressure, becoming more pronounced through 2026/early 2027. Keywood believes DRI's next transaction will serve as a meaningful catalyst to allay investor concerns around the uncertainty in Orserdu's decline.
Price: $16.26, Change: $+0.12, Percent Change: +0.74%