Market Overview

UPDATE: Bank of America Initiates Coverage on Capital Senior Living as Top Small Cap Pick

Related CSU
How To Profit From An Aging Population
Events for the Week of Nov. 17-21, 2014

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 2016JMP SecuritiesMaintainsMarket Outperform
Aug 2016Stifel NicolausDowngradesBuyHold
Sep 2015JMP SecuritiesMaintainsMarket Outperform

View More Analyst Ratings for CSU
View the Latest Analyst Ratings

Posted-In: Bank of America Joanna GajukAnalyst Color Initiation Analyst Ratings


Related Articles (CSU)

View Comments and Join the Discussion!

Partner Center