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Primary Health Properties and Assura initiated at ‘overweight’ as Barclays turns positive on UK primary care

The British bank said the sector offered “relatively ‘safe’, attractive and growing dividend yields” as well as “favourable underlying market dynamics”

Primary Health Properties PLC - Primary Health Properties and Assura initiated at ‘overweight’ as Barclays turns positive on UK primary care

Primary Health Properties PLC (LON:PHP) and Assura PLC (LON:AGR) have been initiated at ‘overweight’ by analysts at Barclays as they took a “relatively positive view” on UK primary care landlords.

In a note on Tuesday, the British bank said the sector offered “relatively ‘safe’, attractive and growing dividend yields” as well as “favourable underlying market dynamics”, adding that they were “relatively more positive on the UK primary care landlords given leases are fully backed by the UK government”.

READ: Primary Health Properties secures funding deal for Mountain Ash primary care centre

While market yields had “compressed strongly over the past four years”, Barclays said there is limited room for further compressions as like-for-like rental growth was “likely to remain muted”, although they did raise concerns that risks around profitability were being overlooked.

The bank also initiated PHP with a target price of 160p and Assura with a target of 81p.

In mid-morning trading, PHP shares were flat at 148.4p while Assura shares were 0.1% lower at 75.4p.

Quick facts: Primary Health Properties PLC

Price: 153.2 GBX

LSE:PHP
Market: LSE
Market Cap: £1.86 billion
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