Sonida Senior Living (SNDA) is receiving "strong" demand from aging demographics in a supply-constrained backdrop, supporting continued occupancy and rate momentum, RBC Capital Markets analysts said in a Friday note.
Analysts said that Sonida is different from some of its peers because it is a 100% real estate owner and operator, and has the "unique" flexibility to allocate cash flow to high-return investments.
RBC said that Sonida "is well positioned to capitalize on favorable (and durable) supply and demand dynamics emerging for the senior housing industry."
Analysts said that Sonida's acquisition of CNL Healthcare Properties is "transformative" and boosts its competitive positioning.
RBC initiated coverage on the stock with an outperform rating and a $39 price target.
Price: 32.16, Change: +0.73, Percent Change: +2.32