Pennant Group price target raised to $28 from $25 at Truist

Truist raised the firm’s price target on Pennant Group to $28 from $25 and keeps a Hold rating on the shares as part of a broader research note previewing Q2 results in Healthcare Services. The sector offers “attractive core demand drivers”, ongoing M&A opportunity, and strong relative positioning, and while “ongoing selectivity” remains important, the firm remains bullish on the group’s long-term drivers – demographics, move to value-based care, and site of service redirection – underpinning its solid growth, the analyst tells investors in a research note. For the company, Truist notes that the solid cash flow and financial flexibility across much of the Alternate Site Care group should help underpin the ongoing business investment, potential M&A, and continued strong trends.