Summary
RBC Capital reiterated an Outperform rating on Brookdale Senior Living stock (NYSE: BKD) and kept a $17.00 target price, signaling confidence in the company’s longer-term trajectory despite a recent decline in the share price. The firm indicated it is willing to add on pullbacks after the stock dropped following fourth-quarter results and the maintenance of 2026 guidance.
Analyst view and rationale
RBC Capital described itself as buyers on weakness, saying it remains comfortable with Brookdale’s strategic direction. The firm pointed to constructive management commentary around pricing and occupancy, as well as an increased emphasis on operations, and said these elements underpin its continued positive view. RBC reiterated its long-term thesis and the Outperform rating, with commentary attributed to analyst Ben Hendrix.
RBC expects Brookdale to be positioned to reach mid-teens adjusted EBITDA growth through 2028, building from a current adjusted EBITDA of $451 million. That target frames the firm’s confidence in the company’s operating plan and future earnings potential.
Market performance and valuation notes
At the time of the note, the stock was trading at $14.68 and had fallen 9.45% over the prior week, despite a substantial one-year return of 174%. RBC sees room for outperformance as baby boomer-driven industry demand increases and supply constraints persist; however, InvestingPro analysis cited in the commentary flagged the possibility that the shares are overvalued at current levels.
Recent financial results and market reaction
Brookdale reported fourth-quarter 2025 results that beat consensus on both EPS and revenue. The company posted an EPS of -$0.17, modestly better than the forecasted -$0.18, and reported revenue of $754.09 million, slightly above expectations. Even with the upside to estimates, the stock fell in premarket trading following the release.
There were no announcements regarding mergers or acquisitions, and no recent upgrades or downgrades from other analyst firms were reported alongside these developments.
Takeaway
RBC’s reiteration reflects continued conviction in Brookdale’s operational and pricing progress and a forecast for mid-teens EBITDA growth through 2028 from a $451 million base. The firm framed the recent share price weakness as a buying opportunity while noting differing views on valuation from InvestingPro analysis.