J.P. Morgan analyst Benjamin Rossi maintained a Buy rating on PACS Group Inc today and set a price target of $44.00.
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Benjamin Rossi has given his Buy rating due to a combination of factors, primarily highlighting PACS Group Inc.’s strategic business model focused on acquiring underperforming skilled nursing facilities (SNFs) and enhancing their clinical, operational, and financial metrics. Management’s proven ability to consistently improve occupancy levels and skilled mix, combined with favorable longer-term earnings growth expectations, reflects the company’s capacity to outperform peers in a fragmented industry.
Furthermore, PACS has demonstrated significant progress through recent mergers and acquisitions, adding a substantial number of facilities in 2024. This embedded earnings potential, paired with consistent cash flow generation, solidifies its ability to fund future expansions. The valuation methodology employed targets a December 2026 price of $44 based on anticipated EBITDA performance and aligns with broader healthcare facility industry trends, considering both risks and ongoing momentum in integration efforts.
In another report released on December 12, Truist Financial also reiterated a Buy rating on the stock with a $40.00 price target.
Based on the recent corporate insider activity of 8 insiders, corporate insider sentiment is neutral on the stock.