UBS Cuts Price Target on Select Medical Holdings (SEM) to $10
- Indexes hit record highs as Trump rally continues
- Unusual 11 Mid-Day Movers 12/8: (COOL) (TLRD) (DRAM) Higher; (SHIP) (OHRP) (MLSS) Lower
- Lower for longer, ECB scales back asset buys
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Oil rises above $50 on renewed hopes for output cuts
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial 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
- UBS Cuts Price Target on SecureWorks Corp. (SCWX) to $13
- Stifel Reiterates Buy on Selecta Biosciences (SELB) Following Phase l Data Release
- Guggenheim Reiterates Buy on United Natural Foods (UNFI) Following 1Q Report
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!