Market Overview

UPDATE: JMP Securities Reiterates On Brookdale Senior Living Following ESC Merger Closing


In a report published Tuesday, JMP Securities analyst Peter L. Martin reiterated a Market Outperform rating on Brookdale Senior Living (NYSE: 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.

Latest Ratings for BKD

Oct 2018JMP SecuritiesMaintainsMarket OutperformMarket Outperform
Aug 2018Stifel NicolausMaintainsHoldHold
Feb 2018RBC CapitalDowngradesOutperformSector Perform

View More Analyst Ratings for BKD
View the Latest Analyst Ratings

Posted-In: JMP Securities Peter L. MartinAnalyst Color Price Target Analyst Ratings


Related Articles (BKD)

View Comments and Join the Discussion!

The Benchmark Company Sees Xenotis Acquisition As Good For LeMaitre Vascular

Morning Market Losers