Count Darren Lehrich among the fans of Brookdale Senior Living's planned $2.8 billion acquisition of rival Emeritus. The veteran Deutsche Bank analyst on Friday morning hiked his price target for Brookdale (Ticker: BKD) to $38 from $35 and says, "The deal puts an exclamation point on the value of BKD's infrastructure and leadership position in the senior living space, and it should accelerate the value of ESC's portfolio over the mid/long-term." As for the cost savings and revenue opportunities expected by Brookdale CEO Andy Smith and his team, Lehrich says there's a good chance they'll prove conservative.
As his peer Frank Sparacino of First Analysis did Thursday, locally based Richard Close of Avondale Partners is backing HealthStream CEO Bobby Frist's strategy of investing in future growth rather than focusing on pumping up profits now. Reiterating his 'market outperform' rating and $33.50 target, Close says HealthStream's focus on building more products for its customers "should be welcomed." And noting the expected 26 percent jump this year in research and development spending, Close says, "The elevated growth is acceptable, assuming it sustains 20%-plus organic growth in recurring revenue." HealthStream shares aren't responding, however: As of 11 a.m., they were down about 2 percent (Ticker: HSTM) to about $28.
National Health Investors posted normalized funds from operations of $26.7 million in the last three months of 2013, up 14 percent from the same period in 2012. Per diluted share, adjusted FFO climbed 7 percent to 90 cents. Revenues for the quarter rose to $32.8 million from $25.9 million in late 2012 as the company began collecting rents from properties it acquired in the past year. Looking ahead to 2014, CEO Justin Hutchens and his team said they expect NHI to post normalized FFO of $3.92 to $4 per share, up from $3.55 last year.
SEE ALSO: The Q4 supplemental financial data
Real estate investment trust National Health Investors has completed its secondary stock offering, raising $282 million by issuing almost 5.2 million shares — a number that included a 675,000-share greenshoe. NHI shares (Ticker: NHI) closed Friday's half-day session at $58.87 and are up slightly for the year.
The investment banks handling the sale of 4.5 million National Health Investors shares have set their price at $57. That's a 6 percent discount to the shares' Wednesday closing price before officials announced their plans to buy 25 properties from Holiday Retirement — and a couple of cents above where they ended in 2012. After expenses, NHI execs will take home $245 million, half of the money they'll need to buy the Holiday portfolio.