Morgan Keegan Comments on Emeritus Management Meetings

Morgan Keegan recently hosted meetings between Emeritus Corp. ESC management and institutional investors. “Our takeaway from our meetings is that the company remains on track to meet our expectation of modest occupancy and rate improvement, leading to steady CFFO growth,” Morgan Keegan writes. “Senior housing stocks have swooned since last week's announcement from Brookdale Senior Living that a dip in second quarter occupancy would cause it to miss the CFFO guidance it reiterated on May 4. Emeritus's shares, down 15.6%, have been particularly hard-hit. We believe this weakness is not warranted by the company's operations.” Emeritus closed Wednesday at $19.75.