BKD - Brookdale cut to Hold at Stifel on lack of catalysts and execution risks
- Brookdale Senior Living ( NYSE: BKD ) dropped in the morning hours Tuesday after Stifel downgraded the senior housing operator to Hold from Buy and trimmed its price target to $4 from $5, citing a lack of catalysts and execution risks.
- The analyst Tao Qiu and the team note that the company’s pre-announced results for 2022 met the topline revenue target but missed adj. EBITDA guidance.
- “The dilutive November equity raise, consecutive outlook cuts, and unclear prospects on the strategic review left bulls with few positive catalysts to cheer on,” the analysts wrote, arguing that the 2023 consensus views on BKD should further go down, hurting near-term upside.
- While analysts welcomed the recent shifts in management at Brookdale ( BKD ), they pointed out that further steps are required to close the valuation gap and reestablish investor credibility more proactively.
- Seeking Alpha contributor, Individual Trader noted in November that Brookdale ( BKD ) management was said to be on the lookout for a buyer.
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Brookdale cut to Hold at Stifel on lack of catalysts and execution risks