Morgan Keegan Reiterates Market Perform Rating on Brookdale Senior Living (BKD)

Morgan Keegan is out with a research report this morning, where it reiterates its Market Perform rating on Brookdale Senior Living Inc. BKD; it has a $16.25 price target on the stock. The MK analysts cited the company’s recent earnings report, which was below estimates. Both occupancy and rate rose, in line with their expectations, but this was offset by lower-than-expected operating margins, higher-than-expected maintenance capital expenses, and lower-than-expected entry fee receipts. The analysts noted that they are maintaining their estimates for upcoming quarters as they expect contributions from recently completed home health agency acquisitions, improved occupancy and entry fee sales in July, and pending debt refinancings. They are also expecting an increase in occupancy and pricing.