Medical Properties Trust Inc Surpasses Average Analyst Price Target

Recently, shares of Medical Properties Trust Inc (Symbol: MPW) traded above the average analyst 12-month target price of $5.50, reaching $5.52 per share. Analysts typically respond in two ways when a stock meets its target: they may downgrade the stock based on valuation or revise their target upward. Reactions are often influenced by fundamental business developments that impact the stock price; a positive outlook may warrant a higher target price.

Understanding Analyst Targets

In the Zacks coverage universe, there are seven different analyst targets for Medical Properties Trust Inc. While the average provides a helpful overview, some analysts hold more conservative views. For instance, one analyst predicts a price of $3.00, while another projects as high as $9.00. The standard deviation for these targets is $1.848, highlighting the diversity of opinions.

The purpose of looking at the average MPW price target is to benefit from the “wisdom of crowds.” This approach combines the insights of multiple analysts rather than relying on a single perspective. With MPW topping the $5.50 average target price, investors are encouraged to evaluate the situation. They should consider whether $5.50 is just a stepping stone to an even higher target or if it signals that the stock has reached its limit.

Analyst Ratings Breakdown

Recent MPW Analyst Ratings Breakdown
»	Current	1 Month Ago	2 Months Ago	3 Months Ago
Strong buy ratings:	1	1	0	0
Buy ratings:	1	1	1	1
Hold ratings:	5	5	7	7
Sell ratings:	1	1	1	1
Strong sell ratings:	3	3	3	3
Average rating:	3.36	3.36	3.5	3.5

The average rating reflects a scale from 1 (Strong Buy) to 5 (Strong Sell). Data for this article was sourced from Zacks Investment Research via Quandl.com.

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.