UPDATE: Goldman Sachs Initiates Coverage on Emeritus Corporation with Neutral Rating, $29 PT on High Leverage

In a report published Thursday, Goldman Sachs analyst Brian Zimmerman initiated coverage on

with a Neutral rating and $29.00 price target. In the report, Goldman Sachs noted, “We initiate coverage of Emeritus Corporation (ESC) with a Neutral rating and 12-month price target of $29. As the largest provider of assisted living in the United States, we believe ESC will register resilient growth driven by favorable demographics, limited new supply of senior living homes, pricing discipline, and high private payer mix. Though ESC has been a solid operator in a challenging environment in the past couple of years, the company's high leverage could prove to be a hindrance. In addition, these favorable trends may be slower to materialize than currently expected by investors.” Emeritus Corporation closed on Wednesday at $24.42.