Pacs Group resumed with a Buy at Citi

Citi resumed coverage of Pacs Group with a Buy rating and $45 price target. The firm continues to view Pacs well positioned as one of the largest skilled nursing facilities operators in a “highly fragmented market.” The company is benefiting from multiple growth levers, including the shift of increasingly complex care to lower cost settings, a large acquisiotn pipeline and referral strength in the aftermath of COVID-19, the analyst tells investors in a research note. Citi sees a margin expansion opportunity and a favorable second half of 2024 for the company.