Pacs Group selloff following Q4 results may be overdone, says RBC Capital

Shares of Pacs Group (PACS) fell 11% despite strong Q4 results and 2026 guidance ahead of expectations, as investors focused on perceived organic growth concerns and acquisition-related dilution, RBC Capital tells investors in a research note. However, the implied 5.5%-6%+ organic revenue growth, industry-leading occupancy, operating leverage, and existing reserves related to the DOJ inquiry suggest the selloff may be overdone, the firm says. RBC Capital, which is a “strong” buyer on Friday’s weakness, made no change to its Outperform rating or $52 price target on the shares.