Brookdale Senior Living Faces Potential Summer Operating Cost Challenges: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
RBC Capital Markets analyst Ben Hendrix reiterated a Sector Perform rating on Brookdale Senior Living Inc. (NYSE:BKD), with a price target of $7. Hendrix expressed caution about potential high mid-to-late summer operating costs due to extreme heat. BKD's June occupancy report showed a weighted average occupancy of 76.8%, up 160 bps Y/Y. The analyst decreased the 2Q23 adjusted EBITDA estimate to $74.2 million on revenue of $748.5 million to reflect June and 2Q occupancy results. BKD shares are trading lower by 11.2% to $3.8250.
July 12, 2023 | 6:43 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Brookdale Senior Living Inc. (NYSE:BKD) faces potential high summer operating costs, according to RBC Capital Markets analyst. The analyst reiterated a Sector Perform rating with a price target of $7. BKD shares are trading lower by 11.2% to $3.8250.
The analyst's caution about potential high summer operating costs for Brookdale Senior Living Inc. (NYSE:BKD) could negatively impact investor sentiment, leading to a decrease in the company's stock price. The reiteration of a Sector Perform rating indicates that the analyst does not expect the company's stock to outperform its sector in the near term. This, combined with the decrease in the company's 2Q23 adjusted EBITDA estimate, could contribute to the stock's current downward trend.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100