UBS Cuts Price Target on Select Medical Holdings (SEM) to $10
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
UBS maintained a Sell rating on Select Medical Holdings (NYSE: SEM), and cut the price target to $10.00 (from $11.00), following the company's 3Q earnings report. SEM completed its criteria transition during 3Q. The CMI and rev/patient day increased, while vols fell in the LTAC biz.
Analyst A.J. Rice commented, "SEM noted several items that negatively impacted Q3 EBITDA by $14.7 mln. The items are one-time, but the three closed LTACHs will not contribute in the future, and there may still be incremental costs associated with integrating the KND hospitals. (1) SEM had higher than expected costs (by $6.5 mln) related to a licensing approval delay at its rehab JV in CA. Licenses were obtained at the end of Q3. (2) $6.5 mln increase in costs Y/Y related to two Cleveland LTACHs obtained from KND through a swap transaction during 2Q16. SEM has been working to align those facilities with its strategy of accepting only criteria-compliant patients. SEM is still positive on the investment, through which it entered a JV with the Cleveland Clinic. (3) SEM closed 3 LTACHs during Q3 and incurred roughly $1.7 mln related costs. The closures, along with impact of hospitals exchanged with KND, reduced patient days by approx 18k."
Shares of Select Medical Holdings closed at $11.70 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Skyworks Solutions (SWKS) PT Raised to $105 at Oppenheimer Following 1Q Report
- United Rentals (URI) PT Raised to $130 at Jefferies Ahead of 4Q Report
- UPDATE: Stifel Upgrades Abraxas Petroleum (AXAS) to Buy Amid Emerging Delaware Basin Potential
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesUBS, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!