UPDATE - UBS Initiates Coverage on Vanguard Health (VHS) with a Neutral; Operating Concentration Pros/Cons

June 20, 2012 12:36 PM EDT Send to a Friend
Get Alerts VHS Hot Sheet
Price: $12.98 -0.69%

Rating Summary:
    11 Buy, 6 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 1 | New: 1
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UPDATE - UBS initiates coverage on Vanguard Health (NYSE: VHS) with a Neutral rating. PT $9.

Analyst, A.J. Rice, said, "Since the company’s initial establishment in 1997, VHS has expanded by acquiring entire hospital systems, generally in large urban markets. VHS has demonstrated a consistent ability to leverage its experience, access to capital, transformative clinical and business approaches and other capabilities to enhance the profitability of the properties it acquires. Approximately 50% of the company’s current revenue base has been added to the portfolio since August 2010, and thus much of the upside from these acquisitions is yet to be realized."

"VHS's operations are more concentrated than those of other public hospital companies, potentially adding volatility to near-term results. Approximately 34% of revenues are currently being generated by VHS hospitals in Detroit, Michigan."

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