RBC Upgrades BKD to Top Pick

Monday, May 19, 2014, RBC Upgraded

to Top Pick from Outperform given the attractive fundamentals of the private-pay long-term care and BKD's industry-leading position, along with highly visible cash flow growth and strengthened by the pending

(NYSE: Health Care) acquisition. RBC analyst Frank G. Morgan complimented BKD as a "strong idea that plays into favorable demographic trends and attractive private-pay, long-term care with an aging population of wealthy seniors and continued strengthening in consumer sentiment and the existing housing market." Moran sees the stock weakness as unwarranted as senior housing is an attractive visible sector to allocate investment dollars. Moran continued to state that BKD has strong operating results and is likely the "HCA" of Senior Housing. Moran concluded on the note that significantly accretive transaction with levers for upside for BKD. BKD shares were last traded up 0.77, or 2.46% at 32.01 from the previous day close of 31.24.