The senior housing business is approaching its “golden age” and Brookdale Senior Residing ought to profit, in line with Jefferies. Analyst Brian Tanquilut initiated protection of Brookdale Senior Residing with a purchase score, saying the sector ought to profit from higher occupancy as child boomers “age into the candy spot.” “The mixture of optimistic demographic developments, improved operations, and monetary engineering … ought to all translate to improved earnings efficiency that is not but baked into the inventory,” he wrote. Together with the improve, Tanquilut established an $8 value goal, reflecting 32% upside from Tuesday’s shut. The inventory is up greater than 4% this 12 months. BKD YTD mountain Shares for the reason that begin of 2024 The agency expects Brookdale to expertise heightened demand that ought to assist speed up earnings as many boomers method their late 70s. A slowdown in new building attributable to Covid-19 pandemic delays and better prices must also profit shares. “As demand re-accelerates attributable to demographics, it is going to take years to get capability rising once more, which signifies that present gamers stand to see elevated occupancy within the near- to med-term,” Tanquilut wrote. “As occupancy picks up, margin leverage ought to emerge for scaled gamers reminiscent of BKD.” Tanquilut views upcoming lease renewals as a possible catalyst for shares, whereas the acquisition of once-leased communities ought to increase margins. He additionally sees the inventory rallying as a lot as 65% as a part of a bull case state of affairs that features quicker-than-expected margin enlargement and occupancy restoration. Brookdale just isn’t extensively adopted by analysts, with solely 4 overlaying it. Of these, two have purchase scores, and the others assigned it an underperform score, LSEG knowledge reveals.