Pennant Group price target raised to $26 from $21 at RBC Capital

RBC Capital raised the firm’s price target on Pennant Group to $26 from $21 and keeps an Outperform rating on the shares. The company reported “strong” Q1 results that met elevated expectations as the stock has already rallied 57% year-to-date, the analyst tells investors in a research note. Pennant’s topline strength has driven margin improvement despite wage inflation of 5%, which could be a source of additional upside, RBC added.