UPDATE: Bank of America Initiates Coverage on Capital Senior Living as Top Small Cap Pick
In a report published Tuesday, Bank of America analyst Joanna Gajuk initiated coverage on Capital Senior Living Corporation (NYSE: CSU) with a Buy rating and $33.00 price target.
In the report, Bank of America noted, “We are initiating coverage of Capital Senior Living (CSU), a senior living operator, with a Buy rating and $33 PO. CSU is almost 100% private pay, unique in our space where government rate risk is a major overhang. CSU is also highly levered to the improving housing market/economy. The high-single-digit core cash flow from facility operations (CFFO) per share growth combined with the recent deals will drive a 19% CFFO/sh growth in 2014.
"Improving housing market/economy, bed conversions and additional deals provide upside to our model and we see CFFO/sh power of $2.63 in 2016, 26% higher than our est. Our $33 PO is based on 16.0x our 2014E EBITDAR, towards the higher end of the historical range given the potential upside. CSU is our Top small cap pick.”
Capital Senior Living Corporation closed on Monday at $25.24.
Latest Ratings for CSU
|Aug 2014||Stifel Nicolaus||Maintains||Buy|
|Mar 2014||Bank of America||Initiates Coverage on||Buy|
|Mar 2013||Stifel Nicolaus||Maintains||Buy|
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