CareTrust REIT (CTRE) is well placed to deploy capital accretively and see solid earnings growth in the next few years, RBC Capital Markets said in a note Friday, noting that its focus is moving to companies that will more directly benefit from strong fundamental tailwinds through organic growth.

RBC said, however, it increased its estimates for the company to account for its recent investment pace.

The investment firm said it now expects FFO of $2.07 per share for 2026, $2.27 per share for 2027, and $2.42 per share for 2028, up $0.03 per share, $0.07 per share, and $0.05 per share, respectively.

RBC said the higher estimates are mainly driven by an increase in its 2026 investment target by $500 million to $2 billion, while RBC still expects $1.5 billion of deals in 2027 and 2028.

The investment firm noted CareTrust's management has been "aggressive deploying capital" and completed $1.4 billion of deals year to date, and it has a $540 million investment pipeline.

RBC lowered the company's rating to sector perform from outperform and decreased the price target to $43 per share from $44.

Price: 38.77, Change: -0.06, Percent Change: -0.15