Sonida Senior Living's (SNDA) recent stock decline was unwarranted given the broad-based strength in its Q1 results, RBC Capital Markets said in a Monday research report.
Robust costs controls driven by labor productivity gains, scheduling discipline, and real-time KPI dashboards are driving margin expansion, the analysts said.
A stable cost structure combined with growing occupancy offers a compelling setup for incremental margins in the future, according to the note.
The company's $16 million to $20 million year-one general and administrative expenses synergy target related to its merger with CNL Healthcare Properties remains on track, RBC said.
RBC reiterated its outperform rating on the stock and boosted its price target to $45 per share from $39.
Price: $37.57, Change: $+0.60, Percent Change: +1.64%