Imperial Capital Starts AdCare Health Systems (ADK) at Outperform

December 13, 2012 8:56 AM EST Send to a Friend
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Price: $4.41 -0.23%

Rating Summary:
    3 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 24 | Down: 28 | New: 14
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Imperial Capital initiates coverage on AdCare Health Systems (NYSE: ADK) with a Outperform. PT $7.00.

The firm comments, "We estimate EBITDA growth of 63% in 2013 to $36mn, driven by incremental acquisitions, optimization of its recently acquired properties, and cost leverage on the company’s increasing scale. We estimate $0.19 in EPS in 2013 vs. a pro-forma loss in 2012E. In the near term, effective management through growth challenges (closing anticipated acquisitions and a property sale, helping investors understand its revenue and EBITDA outlook, potential change of Variable Interest Entity (VIE) structure[s]) could add visibility that could contribute to EBITDA multiple expansion. Our $7 price target is based on 9.0x our 2013E EBITDA."

For an analyst ratings summary and ratings history on AdCare Health Systems click here. For more ratings news on AdCare Health Systems click here.

Shares of AdCare Health Systems closed at $4.37 yesterday.


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