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A Look At Sabra Health Care REIT (SBRA) Valuation After CIO Transition To Darrin Smith

Simply Wall St · 3d ago

Sabra Health Care REIT (SBRA) is in focus after a leadership transition in its investment team, as long-serving CIO Talya Nevo-Hacohen retired and Darrin Smith stepped into the CIO, Secretary, and Executive Vice President roles.

See our latest analysis for Sabra Health Care REIT.

At a share price of $19.15, Sabra Health Care REIT has seen a 6.33% 90 day share price return. Its 1 year total shareholder return of 23.23% and 3 year total shareholder return of 88.03% indicate that momentum has been building around its healthcare real estate story as the CIO transition takes effect.

If this kind of healthcare exposure interests you, it could be a good moment to widen your watchlist with healthcare stocks.

With the shares at $19.15, a value score of 4, an indicated intrinsic discount of 59.86% and a modest 8.86% discount to the average analyst target, you have to ask: is this a genuine value gap, or is the market already baking in future growth?

Most Popular Narrative: 8% Undervalued

At Sabra Health Care REIT’s last close of $19.15, the most followed narrative points to a higher fair value of about $20.82, built on detailed growth and earnings forecasts.

The analysts have a consensus price target of $20.818 for Sabra Health Care REIT based on their expectations of its future earnings growth, profit margins and other risk factors. In order for you to agree with the analyst's consensus, you would need to believe that by 2028, revenues will be $952.0 million, earnings will come to $224.6 million, and it would be trading on a PE ratio of 29.0x, assuming you use a discount rate of 7.8%.

Read the complete narrative.

Curious what kind of revenue ramp, margin profile and earnings multiple this narrative leans on to justify that gap? The full story connects those moving parts into one detailed valuation roadmap built on specific growth and profitability targets, plus a defined discount rate.

Result: Fair Value of $20.82 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on senior housing demand staying tight and on newer operators delivering, while reimbursement or dividend pressure could quickly challenge that optimistic script.

Find out about the key risks to this Sabra Health Care REIT narrative.

Build Your Own Sabra Health Care REIT Narrative

If this version of the Sabra story does not quite fit how you see the numbers, you can quickly build and stress test your own view: Do it your way.

A great starting point for your Sabra Health Care REIT research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Sabra has caught your attention, do not stop here. Widening your opportunity set with focused stock ideas can help you refine how you position your portfolio.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.