Healthcare Realty Trust (HR) has an active board committed to addressing shareholder concerns, finding a replacement for former Chief Executive Todd Meredith, and steering the company in the right direction, Wedbush Securities said in a note on Tuesday.

Analysts, including Richard Anderson, said they expect the process of the CEO search to move quickly and for a new person to be chosen early in 2025. The search for a permanent chief financial officer is on hold, but interim CFO Austen Helfrich performed well during their Q&A, especially under the scrutiny of the board members who will make the final decision.

The analysts said that while the departure of Meredith is a significant loss, shareholders expect the company's board to be actively involved.

"This is not always the case if we are being honest, but in the case of Healthcare Realty Trust, it is an absolute truth. These are very serious decisions for any board, and while the jury may be out on how the medical office will fair in an economic environment that may reinflate from Trump and tariffs, our main takeaway was an active board that sat in our meeting, fielded tough questions alongside the existing team, and demonstrated a commitment to shareholders to get the Healthcare Realty Trust story on the right track."

The board believes the main issue has been poor communication about the company's performance. While the timing of former CFO Kris Douglas's departure in mid-September, followed by the CEO's departure weeks later, was unusual, the trigger point was the Q3 earnings call, which did not meet the board's communication expectations, the analysts said.

"We expect outreach to both the buyside and sellside to improve meaningfully once the dust settles, as that is the main focus of the board's decision to make these very serious decisions," the analysts said.

Wedbush has a neutral rating and a $18 price target on Healthcare Realty Trust.

Price: 17.32, Change: -0.11, Percent Change: -0.63