BKD’s Rents to Benefit from Strong Demographics and Historically Low Supply Growth

Analysts at Goldman Sachs reiterate their "buy" rating on Brookdale Senior Living Inc (NYSE: BKD), while adding the company to the Conviction Buy List. The 12-month target price for BKD has been raised from $20 to $22.

According to Goldman Sachs, BKD’s shares offer approximately 30% upside in the near future. BKD’s earnings are likely to exceed expectations. Goldman Sachs says that Brookdale Senior Living might post higher-than-expected rents on the back of robust demographics and historically low supply growth levels.

BKD’s ancillary services are likely to give an additional boost to the company’s growth at a time when housing trends are yet to see a bottom, Goldman Sachs mentioned. BKD’s cost cutting initiatives have added to the company’s operating leverage and are setting the ground for further expansion in the company’s stock multiple.