Brookdale Senior Living (BKD) has reported May occupancy data in line with bullish comments by the company's management at a recent event and ahead of levels implied in RBC's model for Q2, RBC Capital Markets said in a note Tuesday.

The company's May occupancy figure of 82.5% compared with RBC's Q2 consolidated weighted-average occupancy estimate of 82.3%, RBC said. The note added that month-end occupancy rose to 83.5%, which is an "encouraging leading indicator for June."

The investment firm said it increased its Q2 occupancy estimate to 82.5% from 82.3% due to the "better-than-expected occupancy seen to date this quarter."

RBC said it is "optimistic" around the company's positioning as Brookdale is entering what is "historically its strongest occupancy growth period of the year from May to September."

The investment firm added that there is indication of "demographic tailwinds and meaningful upside from operating leverage as occupancy continues to improve at underperforming facilities."

RBC has an outperform rating on Brookdale and a $17 price target.

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