Brookdale Senior Living buying Florida firm
Analyst action: Tennessee Commerce, Brookdale
Guggenheim analyst Jeff Davis thinks Tennessee Commerce Bank can, as its top executives have projected, lift its capital ratios to where regulators want them by shrinking its balance sheet and injecting some parent-company cash. In a note to investors last week, he lowered his price target and earnings estimates and said he expects the Franklin company (Ticker: TNCC) will have to go back to the market for more capital "because we do not think the company can earn enough money the next few years to fund TARP redemption and meet enhanced capital requirements."
Payment of accrued but unpaid TARP and TPS dividends, which total about $2.5 million per year, will have to be funded, too [...] We also assume the issue will be put on hold until 2013, which may prove to be optimistic depending on how profitability evolves.
Over at Goldman Sachs, analyst Sloan Bohlen has upgraded Brookdale Senior Living to 'buy' from 'hold' after a two-and-a-half-week correction took the Brentwood-based company's shares from above $27 to about $25. Bohlen now sees the stock (Ticker: BKD) going to $30 — up from $28 in March — and also has raised his cash flow estimates on signs of pricing strength.
Earnings wrap: NHC, Healthcare Realty, First Acceptance
Analyst action: Cracker Barrel, Brookdale
The number-crunching and back-testing analysts at Standpoint Research are again bullish on shares of Cracker Barrel Old Country Store, which have retreated about 10 percent so far this year. They've hiked their rating to 'buy' from 'hold' and have a target of $58. Cracker Barrel (Ticker: CBRL) is changing hands this morning at $48.90, down about 1 percent from yesterday's close.
Even though shares of Brookdale Senior Living (Ticker: BKD) have doubled since Labor Day, Goldman Sachs analyst Sloan Bohlen sees them inching a bit higher still. Bohlen has lifted his price target to $28, about 3 percent above where they closed Tuesday trading.
Brookdale expands credit line
Brookdale Senior Living has added $30 million to its credit facility, bringing the total commitment to $230 million. GE Capital, Healthcare Financial Services, acts as administrative agent, and Royal Bank of Canada, Bank of America, Mubadala GE Capital and PNC Bank now participate as lenders under the line of credit."We are pleased that RBC and PNC have recently joined with the other lenders in our Line of Credit and that these five strong financial institutions have shown their support of Brookdale. This expansion of the credit line furthers our strategy of using positive cash flow to delever the Company's balance sheet while simultaneously creating financial flexibility to pursue opportunities as they arise."Brookdale (Ticker: BKD) yesterday reported fourth quarter and year-end financial results that bested 2009 thanks to better occupancy, rental rates, and expanded capacity. The stock is up more than 8 percent in early trading Thursday.
Investment firms buy into local companies
Parental Health adds leadership
Scotte Hudsmith's health care tech startup Parental Health has expanded its leadership team to include Darin Moore as chief technology officer and Rob Dublin as senior VP of sales. (The announcements were made Monday, but apparently our spam filter is working overtime.) Moore, previously with Healthways, will be responsible for leading the development of hte company's technology solutions, maintaining usability of the application interfaces and infrastructure management, among other duties. Dublin, formerly CEO of KLR Laboratory, will develop and manage a sales force to introduce Parental Health's MISTY product to senior living facilities, the home health market, and other payers and providers. For more on MISTY, see our story in the July/August issue of Nashville Post magazine.Brookdale's major shareholder selling $243M worth
