Mizuho Securities Cuts Price Target on LifePoint Health (LPNT) to $93 Following 2Q

Mizuho Securities reiterates a Buy rating on Lifepoint Holdings (NASDAQ: LPNT), and cut the price target to $93.00 (from $95.71), following its 2Q report. Analyst Sheryl Skolnick asked LPNT, is growth in inpatient admits really as crucial to the success of hospitals in the current & future HC environment as we have always thought it was? LPNT said that they may actually make more money (in $, not %) from outpatient than inpatient and LPNT redeploys inpatient square footage to outpatient services.

Analyst Sheryl Skolnick commented, "We analyze LPNT's 2Q report and comments in the context of a crucial question: Is growth in inpatient admits really as crucial to the success of hospitals in the current & future HC environment as we have always thought it was? The answer surprised us, but not enough to abandon the thesis that admits drive performance. Still, the data and FCFs are good enough to continue to support a Buy, but the risks cause us to lower our target multiple to 8.7x 2015E EBITDA (was 9.1x) and our target to $93 from $95.71."

For an analyst ratings summary and ratings history on Lifepoint Holdings click here. For more ratings news on Lifepoint Holdings click here.

Shares of Lifepoint Holdings closed at $82.86 yesterday.

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