UPDATE: Deutsche Bank Initiates Capital Senior Living at Buy; Well Capitalized Consolidator

Deutsche Bank initiated coverage on Capital Senior Living

with a Buy rating and a $22 price target. Deutsche Bank noted, "We believe CSU's management team enjoys a strong reputation within the industry as a group of experienced operators. Based on our due diligence of its portfolio, we also believe it maintains very high-quality and well-capitalized assets. As such, CSU's margins are 1200 bps higher than the peer group on a YTD basis and were 1100 bps higher in 2011. CSU is able to achieve these margins because it's business model is geographically concentrated, thus allowing it to leverage regional and corporate overhead very efficiently." Capital Senior Living closed at $14.86 on Tuesday.