The firm reduced its price target to $35 from $37 on the stock.
Even though Omega Healthcare's skilled nursing exposure is very high at 90%, the exposure is composed in a way that carries less risk, Jefferies wrote in a note.
For example, the company's tenants typically have lower exposure to Medicare, which is where the funding pressure is, according to the firm.
Additionally, only 7.6% of revenues come from tenants with rent coverage below 1x, the company has very high rent coverage ratios and its tenant base is well diversified, Jefferies notes.
Based in Hunt Valley, MD, Omega Healthcare is a self-administered real estate investment trust (REIT) that invests in income producing healthcare facilities and long-term care facilities located throughout the U.S.
Shares are flat in pre-market trading after closing lower by 0.23% to $30.94 on Wednesday.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.
Omega Healthcare's strengths such as its robust revenue growth, increase in net income and expanding profit margins are countered by weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.
You can view the full analysis from the report here: OHI
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.