NEW YORK (TheStreet) -- Shares of HCP (HCP - Get Report) are down 5.08% to $34.16 early Tuesday afternoon as the stock was upgraded to "hold" from "underperform" and its price target increased to $32 from $25 at Jefferies.
The firm upgraded HCP after the California-based healthcare-focused real estate investment trust announced on Monday plans to spin off its "underperforming" skilled nursing and assisted living assets, HCR ManorCare portfolio, into a separate, publicly-traded REIT in the 2016 second quarter.
After the spin off is complete, HCP will likely consist of more than 860 properties with an annual portfolio income of about $1.4 billion.
Before yesterday's market open, HCP reported 2016 first quarter earnings of 25 cents per share and revenue of $115.8 million, in line with analysts' expectations. The company reported funds from operations of $321.8 million or 69 cents per share.
Separately, TheStreet Ratings rated HCP as a "hold" with a score of C.
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 articles's author. TheStreet Ratings has this to say about the recommendation:
The primary factors that have impacted this rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
Among the primary strengths of the company is its revenue growth. At the same time, however, TheStreet Ratings also finds weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
You can view the full analysis from the report here: HCP