Ventas (VTR) is poised to generate strong organic growth in its senior housing operating portfolio and is actively deploying its capital in an accretive manner to expand its housing portfolio, RBC Capital Markets said in a note on Tuesday.

The brokerage noted that the company has been investing heavily in its housing portfolio and expects to make $3 billion in equity-funded acquisitions in 2026, which should reduce its earnings before interest, taxes, depreciation, and amortization ratio to 4.4x in fiscal year 2026 from 5.2x in the previous year.

RBC said the company expects net operating income to remain between 13% and 17% in 2026, and added that the expanded portfolio should drive net operating income growth to between 8.5% and 10.5%, up from 7.6% in 2025.

The analysts raised senior housing portfolio organic growth estimates by 0.5% and 1% for fiscal years 2026 and 2027, and expects core earnings growth of 9% in 2026 and 11.5% in 2027, including non-cash comparable adjustments.

RBC maintained an outperform rating on the stock and raised its price targets to $91 from $83.

Price: 83.50, Change: +0.79, Percent Change: +0.96