DrabCrab5 Dec. 22 at 11:39 AM:
$PACS balanced but overall very positive report from JPM. - Report noted that JPM’s “Not Rated” designation was related to a period of restriction prior to re-initiation - Skilled nursing facility (“SNF”) industry well-positioned driven by aging population and shift of higher acuity services into post-acute landscape - Trump admin approach to SNF regulation and rulemaking more favorable than Biden admin - Believes PACS has sizable embedded earnings growth potential with favorable cash flow generation dynamic driven by the significant M&A from late 2024, I.e. improving recently acquired facilities - Healthy balance sheet and FCF generation provides ample capacity to continue M&A in a highly fragmented industry - Headline regulatory / compliance risk remains elevated as the company re-establishes credibility - $44 price target based on 12x 2027 EBITDA.
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