PACS Group's (PACS) agreement to acquire 32 skilled nursing facilities in Florida supports the company's strategy of expanding into markets with strong demographic demand and opportunities to improve care delivery, UBS said in a note emailed Wednesday.

The deal adds 4,049 skilled nursing beds, while bringing its total facility count to 390, including remaining Eduro facilities, the brokerage said. The transaction is expected to close in Q4.

UBS noted PACS has now completed 31 of 34 facilities in the previously announced Eduro deal and expects the company to add close to 70 facilities this year, compared with its typical target of about 20.

UBS maintained a buy rating with a $60 price target.

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