UPDATE: Deutsche Bank Reiterates on Brookdale Senior Living Following Model Update

In a report published Thursday, Deutsche Bank analyst Darren Lehrich reiterated a Buy rating on Brookdale Senior Living BKD, but lowered the price target from $36.00 to $35.00. In the report, Deutsche Bank noted, “We are updating model to incorporate some considerations for 2014: the net effect of the update brings CFFO/sh estimate down $0.24 to $2.65, which is now more in-line w/consensus, and still reflects solid +10% YoY growth. We continue to believe BKD will see YoY gains in occupancy and rate growth, so the key changes in our model relate to: (1) slightly higher health benefit costs due to ACA; (2) slightly higher G&A assumptions; (3) lower assumed in-organic growth due to slower M&A environment, and (4) slightly lower EF contributions. Maintain Buy, although trimming PT to $35 ($36) based on 11.5x modestly lower out-yr 2015 CFFO/sh of $3.03 ($3.22).” Brookdale Senior Living closed on Wednesday at $28.46.