UPDATE: Deutsche Bank Initiates Five Star Quality Care at Buy on Product Mix Improvement

Deutsche Bank initiated coverage on Five Star Quality Care

with a Buy rating and a $7.50 price target. Deutsche Bank noted, "Among the senior living companies under our coverage, FVE has the highest mix of government reimbursement (26%) due to its skilled nursing facility exposure. However, FVE's mix of business has improved significantly in recent years due to dramatic growth in the number of IL/AL communities in operation and divestiture of certain SNF assets. In addition, we note that the recent sale of FVE's institutional pharmacy business serves as a milestone in simplifying the overall story." Five Star Quality Care closed at $5.25 on Tuesday.