Brookdale Senior Living (BKD) is expected to benefit from the senior housing sector for the next several years, RBC Capital Markets said in a note Monday after a recent investor day event.
"As demand continues to increase, we expect to see rate momentum to continue for a number of years given BKD's strong position in attractive markets," the report said.
RBC analysts said there's material upside potential through incremental occupancy and revenue per occupied room growth even as they are "impressed" with the company's mid-teens adjusted EBITDA growth target.
The analysts said they came away more confident in Brookdale's pricing strategy and its ability to drive shareholder value.
"We expect focus to shift to strategic pricing initiatives as occupancy continues to improve," they said.
RBC kept its outperform rating on the stock.
Price: 16.07, Change: +1.07, Percent Change: +7.13
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