Pacs Group initiated with an Outperform at RBC Capital

RBC Capital initiated coverage of Pacs Group with an Outperform rating and $30 price target. Pacs is a premier operator of skilled nursing facilities, bringing differentiated value to post-acute care, with the benefit of strong peer precedent to validate its growth strategy and decentralized operating model, the analyst tells investors in a research note. The firm sees a solid backdrop for post-acute providers as well as “significant upside potential” in the value proposition that Pacs offers patients, payors, and health systems in its markets.