Pali Research Initiates Coverage on LifePoint (LPNT) with a Neutral; Weakest Mgmt in Sector

October 22, 2009 7:39 AM EDT

Pali Research initiates coverage on LifePoint (Nasdaq: LPNT) with a Neutral.

Pali analyst says, "LPNT distresses us. We see the company as having the weakest management in the sector based on a track record of poor physician relationships, deeply troubled acquisitions, poor quality scores and a lack of operating experience anywhere in the “C-Suite.” We are troubled by management’s seeming inability to admit when it has had a poor quarter and by the significant decline in YTD cash flows. Therefore, we are not surprised that earnings have been relatively flat for the last three years and probably will be again in 2009 and 2010...We would also become more aggressively negative if LPNT acts on its intention to acquire hospitals: in our view it has trouble managing the ones it already owns, why would we approve of them compounding the problem? We are therefore stranded in “NEUTRAL” territory for our official equity rating and we set no price target."

To see more analyst ratings on LPNT Click Here.

LifePoint Hospitals Inc., through its subsidiaries, owns and operates general acute care hospitals in non-urban communities in the United States.

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