Lifepoint Holdings (LPNT) PT Lifted to $75 at Leerink Partners

Leerink Partners analyst Ana Gupte bumped her price target on Lifepoint Holdings (NASDAQ: LPNT) to $75.00 (from $70.00) following recent Q1 results that beat on revenue but was in-line on EBITDA and EPS. The firm maintained a Market Perform rating.

Gupte commented, "Net revenue beat consensus estimates by 2% driven by better than expected bad debt decline and a beat on same store (SS) volumes partially offset by slower growth in SS pricing. SS adj. admissions growth beat was driven by lower acuity Emergency Department (ED) admissions and outpatient surgeries. Lower acuity volumes resulted in a pricing growth miss. ACA tailwinds from a decline in uninsured admissions accelerated, with bad debt as a percentage of gross revenue beating estimates and improving both sequentially and YoY but with increased concerns on non-collectability of co-pays and deductibles. EBITDA was in-line despite revenue beat driven by higher Salaries & wages (SWB) and Supplies expenses partially offset by lower other operating expenses. 2015 guidance of $5.05-5.15B in revenue and $690-720MM in EBITDA was maintained while we also maintain our 2015E and 2016E EBITDA. ACA tailwinds are now estimated to be $17 MM, $10 MM higher than previous, offsetting the margin compression from recent acquisitions and divestitures though guidance remains unchanged. LPNT story remains one of inorganic growth fueled by a less levered Balance Sheet."

The firm maintained 2015E and 2016E EBITDA estimates at $698MM and $739MM, respectively.

For an analyst ratings summary and ratings history on Lifepoint Holdings click here. For more ratings news on Lifepoint Holdings click here.

Shares of Lifepoint Holdings closed at $71.44 yesterday.

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