02:25 PM EDT, 10/31/2025 (MT Newswires) -- Stifel Canada expects DRI Healthcare Trust (DHT-UN.TO) to report solid third-quarter results, showing the benefit of internalization and ridding of a fee structure (July), leading to 84.5% adj. EBITDA margins on US$45.6 million revenue, +10% YoY. The company has a Buy rating and a $20 price target.

"Our 84.5% margin forecast is ahead of the street ~80% (on $45.1 million sales) but consistent with management's commentary with certain one-time expenses in-nature, impacting Q2 (76%) and anticipated progression."

Analyst Justin Keywood favours the internalization transaction and believe valuation has not nearly reflected the benefits, including operating leverage. He also sees DRI's pipeline as active with pharmaceutical royalties as a relatively new form of financing, including Synthetic royalties, evidenced by the Viridian transaction (Oct. 20).

Additional transactions should continue to serve as catalysts for DRI, given the track record (~18% IRR) and building out a multi-year growth portfolio.

DRI Healthcare reports its third-quarter results on Nov. 5.

Price: 15.38, Change: +0.41, Percent Change: +2.74