Analyst Reiterates Buy on NHPAP Preferred at 9.9% Yield

An analyst on Seeking Alpha reiterated a buy recommendation on National Healthcare Properties preferred stock (NHPAP) seven months after an initial call. The preferred shares have rallied since the first article. The analyst said the stock remains attractive.

The preferred issue yields 9.9%. The analyst pointed to improving business momentum and rapid deleveraging at the company as reasons to hold. Those factors have reduced risk for preferred holders, the analyst wrote. A yield at that level implies a significant risk premium, even after the recent rally. The analyst's view is that the payout is becoming more secure as debt ratios fall.

The analyst disclosed no position in the stock and no plans to initiate one within 72 hours. The article expressed the analyst's own opinions. The author was not compensated beyond Seeking Alpha's standard author payments.