Investing.com -- On Tuesday, Jefferies launched coverage of large-cap U.S. healthcare real estate investment trusts, favoring senior housing as its preferred way to play the sector.

Analyst Joe Dickstein said "senior housing remains our preferred way to invest in healthcare real estate," citing favorable demographics and limited new supply.

The analyst was more cautious on other property types, viewing outpatient medical as high quality but most attractive when rates are falling (which is not the current backdrop) and remaining wary of life science given elevated vacancy.

The firm initiated Janus Living at Buy with a $36 price target, calling it "the purest exposure in our coverage universe to attractive private-pay senior housing fundamentals" through its RIDEA portfolio.

Dickstein said a net cash balance sheet and attractive cost of capital give it a long runway for accretive external growth, and that it looks cheaper than peers once adjusted for its superior earnings growth.

Jefferies also assumed coverage of Welltower and Ventas at Buy, with targets of $275 and $102, respectively. It called Welltower's senior housing portfolio among the industry's highest quality, justifying a premium valuation, while Ventas offers similar tailwinds at a meaningful discount and a greater margin of safety.

The bank was more neutral on two names tied to other property types, rating Healthpeak and Healthcare Realty Hold, with targets of $21 and $20. It cited Healthpeak's growing reliance on a life-science recovery and Healthcare Realty's concentration in outpatient medical, preferring senior housing's stronger growth outlook.