Oppenheimer starts Pacs Group at Outperform on growth potential

Oppenheimer initiated coverage of Pacs Group with an Outperform rating and $31 price target. Pacs is a leading post-acute healthcare company, operating 218 facilities across nine states, with over 60% of facilities and beds in California, the analyst tells investors in a research note. The firm says the company deploys a decentralized model, relying on highly-incentivized non-clinical administrators that can turnaround a facility within three years. It believes Pacs has a proven acquisition-turnaround strategy that should drive significant growth in the coming years.