Pacs Group price target raised to $40 from $37 at Stephens

Stephens raised the firm’s price target on Pacs Group to $40 from $37 and keeps an Overweight rating on the shares. Pacs Group continues to execute on its opportunity to harvest $80M-$100M of EBITDA in 2024-2025 from acquired facilities, driving a 15% EBITDA beat in Q2 and subsequent 2024 guidance raise by 5% at the midpoint vs. the prior outlook, the analyst tells investors in a research note. The firm sees Pacs displaying a beat and raise tempo throughout 2024 given year-to-date performance and historical earnings seasonality showcasing a stronger second half performance relative to first half.