Goldman Sachs Upgrades Hill-Rom Holdings (HRC) to Conviction Buy; Attractive LBO

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Goldman Sachs added Hill-Rom Holdings (NYSE: HRC) to its Conviction Buy List and raised its price target from $40 to $41, suggesting 24% upside.

The firm believes the hospital bed cycle has bottomed and they see potential for a 2HFY13 and FY14 inflection. This view is supported by strong 1QFY13 results, they note. Goldman also see cash flow growth supporting higher levels of share repurchases.

Also, while the firm doesn't see a high likelihood of an LBO, an analysis "demonstrates HRC's potential attractiveness for financial buyers on an IRR basis."

For an analyst ratings summary and ratings history on Hill-Rom Holdings click here. For more ratings news on Hill-Rom Holdings click here.

Shares of Hill-Rom Holdings closed at $33.15 yesterday, with a 52 week range of $24.69-$36.13.

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