Deutsche Bank Upgrades Gentiva Health Services (GTIV) to Buy; Home Health Growth Prospects Look Better

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Deutsche Bank upgraded Gentiva Health Services (NASDAQ: GTIV) from Hold to Buy with a price target of $12.50 (from $8.00).

Deutsche analyst, said, "Our neutral stance had been underpinned by concerns about the co's debt covenants and, to a greater extent, the potential for Medicare hospice payment reform over the medium-run (2014 timeframe). While it is well-understood by the market that GTIV successfully amended debt covenants, we believe GTIV shares overly-discount the risk of hospice reform on a nearer-term basis. Based on our read of CMS' regs, we believe hospice payment reform is much further out -- thus giving GTIV time to execute better in hospice and de-lever. We see risk/reward much improved and upgrade to Buy."

For an analyst ratings summary and ratings history on Gentiva Health Services click here. For more ratings news on Gentiva Health Services click here.

Shares of Gentiva Health Services closed at $6.11 yesterday, with a 52 week range of $2.81-$18.88.

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