In a report released today, Brian Tanquilut from Jefferies maintained a Buy rating on Brookdale Senior Living (BKD – Research Report), with a price target of $8.00.
Brian Tanquilut has given his Buy rating due to a combination of factors that highlight the strengthening fundamentals of Brookdale Senior Living. The company’s recent occupancy performance in February, which saw an increase of 10 basis points month-over-month to 79.3%, defies the typical seasonal decline and indicates a growing demand for senior housing. This demand is largely driven by demographic trends, particularly the aging baby boomer population, which is expected to continue to outpace supply.
Furthermore, the improvement in occupancy rates is significant given Brookdale’s high fixed cost structure, as it suggests potential for notable margin expansion. This could lead to positive earnings and free cash flow surprises, ultimately driving stock price appreciation. The company’s ability to maintain above-trend occupancy despite the elevated flu season also supports the expectation of higher-than-anticipated revenues and earnings moving forward.
According to TipRanks, Tanquilut is a 3-star analyst with an average return of 2.1% and a 49.46% success rate. Tanquilut covers the Healthcare sector, focusing on stocks such as Option Care Health, Brookdale Senior Living, and Radnet.