UPDATE: Stifel Nicolaus Increases PT to $20 on Capital Senior Living on Growth Outlook, Execution
Stifel Nicolaus reiterated its Buy rating on Capital Senior Living (NYSE: CSU) and raised its price target from $17 to $20.
Stifel Nicolaus commented, “Expected annual growth of 20%, sum of parts value below current stock price, nearly non-existent reimbursement risk and high confidence in business strategy allow us to maintain our Buy rating on the shares and increase our target price to $20. … We expect combined industry fundamentals, seasoning of unit conversions and improved revenue/cost IT systems to yield 100bps+ occupancy growth in 2013, 3%+ rate growth, and 50bps expansion of operating margins. This yields around 4.5% internal revenue growth and 6% internal NOI growth."
Capital Senior Living closed at $16.84 on Thursday.
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