UPDATE: Stifel Nicolaus Cuts PT to $26 on Emeritus on Updated Estimates

Stifel Nicolaus reiterated its Buy rating on Emeritus (NYSE: ESC) but reduced its estimates from $27.50 to $26.

Stifel Nicolaus commented, "We hosted meetings between Emeritus management and institutional investors. The company, like its senior housing peers, benefits from a favorable supply/demand dynamic that management expects to persist. … Management said that it chose to be a REIT tenant rather than a REIT joint venture partner for 133 former Sunwest facilities because it sees well above-average growth potential. Full consolidation rather than a minority interest allows it to capitalize on this. …The company acknowledges that its recent Nurse on Call home healthcare acquisition increases its exposure to Medicare, but sees operating opportunities and efficiencies that will offset the risks."

Emeritus closed at $21.69 on Wednesday.

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