In a report released yesterday, 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 suggest a positive outlook for Brookdale Senior Living. The company is poised to benefit from demographic trends that are increasing demand for senior housing, while the supply of such housing is growing at a slower pace. This imbalance is expected to lead to higher occupancy rates and improvements in EBITDA and free cash flow, which are not yet fully reflected in the current stock price.
Additionally, recent corporate governance changes, including a new CEO and board member, are seen as positive steps towards better execution of the company’s strategy. The company’s preliminary results for the first quarter of 2025 indicate that adjusted EBITDA is tracking ahead of expectations, and management anticipates positive free cash flow for the quarter, which historically has been negative. These developments, along with a sequential and year-over-year increase in occupancy rates, reinforce the belief in the company’s potential for earnings growth.
In another report released on April 9, RBC Capital also maintained a Buy rating on the stock with a $8.00 price target.