Bank of America Reiterates Buy, $20 Target on Brookdale Senior Living

Bank of America maintains its Buy rating and $20 price target on Brookdale Senior Living, Inc. (NYSE: BKD) as the company offered a bullish long term look but no indication of material improvement on recently pressured quarters.

BofA says, “Management sees key growth drivers for the company as occupancy, entrance fees, expansions, and community repositioning. Every 100 bps of occupancy results in $18m (6%) of cash flow at an 80% incremental margin. Meanwhile, management believes occupancy neutral entrance fee sales are $10-15m higher than the current run rate with $90m of unsold entrance fee inventory.”

BKD closed up 2.72 percent at $14.89 per share on Friday.