Analyst Sees Value in Nationwide Health Properties

A month-long slide that wiped out 24% of the value of Nationwide Health Properties Inc. has gone on long enough, an industry analyst said in boosting his rating Tuesday of the Newport Beach real estate investment trust to “buy” from “market perform.”

The company’s stock responded by gaining 31 cents to close at $12.56 a share in New York Stock Exchange trading. The shares had fallen from $16.19 on Oct. 10 to $12.25 a share Monday, its low for the past three months.

Jerry Doctrow, an analyst at Legg Mason Wood Walker Inc. brokerage, said the nursing home industry has bottomed out and “further selling pressure [on NHP’s stock] is unlikely.”

Doctrow said the company’s 14.9% dividend yield and potential price growth of 21% offers investors a 36% potential total return.