Reasonable Expectations Keep Jefferies Bullish on Envision Healthcare (EVHC); Reiterates Buy

Jefferies maintained a Buy rating on Envision Healthcare (NYSE: EVHC), and cut the price target to $38.00 (from $47.00). Jeffeires Believes that EVHC is well-positioned to hit 4Q15 EBITDA guidance and the current 2016 EBITDA consensus through basic operational execution. Jeffeirs also says that the company's unique capabilities and service offerings will enable it to win a significant number of profitable, new contracts, particularly as the healthcare system evolves with value-based purchasing models.

Analyst Brian Tanquilut commented, "While we recognize that EVHC is a show-me story NT after its last earnings miss, we also believe that the stock has sold off more than necessary, particularly given our view that '16 Street expectations are now very reasonable and mgmt. is likely to pursue a more aggressive M&A strategy in the next 12 mos. We believe EVHC has cobbled together a unique set of assets/capabilities, particularly with Evolution Health, that set it up for good LT growth."

For an analyst ratings summary and ratings history on Envision Healthcare click here. For more ratings news on Envision Healthcare click here.

Shares of Envision Healthcare closed at $28.26 yesterday.

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