Ventas (VTR) continues to deliver "solid earnings growth" supported by strong senior housing operating portfolio trends and an improving "investment outlook" following its Q2 results, RBC Capital Markets said in a note Friday.

RBC raised earnings estimates to $3.90 per share for 2026; $4.38 for 2027, and $4.88 for 2028. The higher outlook "largely" reflects Ventas increasing its 2026 investment target to $4.5 billion from $3 billion, with the additional $1.5 billion expected to contribute about $0.05 per share of funds from operations, according to the note.

Ventas completed $3.2 billion of investments through midyear and continues to find deals with yields in the "mid-6.0%" range, the report said, adding that core earnings are now expected to grow 9.7% in 2026; 12.3% in 2027, and 11.3% in 2028.

RBC also said it expects Ventas to "slowly increase" the exposure to its senior housing operating portfolio through acquisitions and "organic growth."

RBC reiterated its outperform rating on the stock and raised its price target to $99 from $98.

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