UPDATE: Stifel Nicolaus Raises PT to $13 on Capital Senior Living Corporation; Growth Story Intact
Stifel Nicolaus increases its price target from $12 to $13 on Buy-rated Capital Senior Living Corporation (NYSE: CSU) on fundamentals and acquisition deals.
Stifel Nicolaus comments, "We continue to like the story here and it's essentially two prong with good internal growth from occupancy / rate improvement bolstered by highly accretive acquisitions using mortgages to leverage returns. On the occupancy front Capital Senior benefits from having a preponderance of units designated independent living, which are outperforming assisted living on an industry wide basis, and a significant amount of properties (37% of portfolio) located in Texas-based metro areas that are performing well. There is also a third potential catalyst, via monetization of the company's real estate or some other strategic event, but our Buy rating is based upon the CSU's growth potential (20%+ annually in our view) and valuation as a stand-along entity."
CSU closed at $10.17 on Monday.
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