In a report published Tuesday, JMP Securities analyst Peter L. Martin reiterated a Market Outperform rating on Brookdale Senior Living BKD, and raised the price target from $40.00 to $46.00.
In the report, JMP Securities noted, “We reiterate our Market Outperform rating on Brookdale Senior Living and raise our price target to $46 from $40 based on 12.5x Adj. EV/2015 EBITDAR (unchanged) plus current merger synergy expectations, discounted at 10%, following our 10Q review. With the ESC merger closed, we are updating our 2014-2016 estimates to $2.58, $2.96, and $3.30 versus our previous BKD standalone 2014-2016 estimates of $2.73, $2.97, and $2.94, respectively. We are very comfortable that BKD can achieve its year three $0.50 CFFOPS accretion guidance and we currently forecast $0.58 on better than expected operating results. We estimate that every $1.75mm in either cost savings or incremental profitability results in $0.01 CFFOPS. We believe the current weakness in the stock is more related to a shareholder position shift post-merger vs. industry fundamental deterioration, which presents a great long-term buying opportunity, in our opinion. Our $46 price target offers 37.3% upside from current levels.”
Brookdale Senior Living closed on Monday at $33.39.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in