Cantor Fitzgerald analyst Joseph France reiterated a Buy rating on Five Star Quality Care (NYSE: FVE) today and set a price target of $2.50. The company’s shares opened today at $1.13, close to its 52-week low of $1.05.
France said:
“We reiterate our Overweight rating on FVE, but are cutting our 2018 and 2019 outlooks and lowering our 12-month price target to $2.50 from $3, to reflect the continued weakness in occupancy and higher-than-expected wage pressures. Occupancy continues to challenge results as new supply pressures volumes and weighs on margins, although this is partly mitigated by initiatives to increase services such as rehabilitation, wellness and home health. We believe that FVE’s ongoing investment in its current properties makes them more competitive and could possibly accelerate growth and boost sentiment toward the name. The company has also started opportunistically divesting its standalone SNFs, which are driving much the underperformance.”
According to TipRanks.com, France is a 5-star analyst with an average return of 11.5% and a 59.2% success rate. France covers the Services sector, focusing on stocks such as Cross Country Healthcare, Envision Healthcare, and US Physical Therapy.
Currently, the analyst consensus on Five Star Quality Care is a Moderate Buy with an average price target of $2.50.
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Based on Five Star Quality Care’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $7.95 million. In comparison, last year the company had a GAAP net loss of $6.51 million.
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Five Star Senior Living, Inc. engages in the senior living operations. It operates through Senior Living Communities and Rehabilitation and Wellness segments.
