KeyBanc Upgrades Hill-Rom Holdings (HRC) to Overweight

KeyBanc upgraded Hill-Rom Holdings (NYSE: HRC) from Sector Weight to Overweight with a price target of $59. Analyst Matthew Mishan noted improvements to diversify and better leverage its scale.

"We believe: 1) following several acquisitions, it is more diversified and results are likely to be less volatile; 2) it has changed its sales model and is more effectively leveraging its scale; 3) despite some uncertainty in hospital capital spending trends, its underlying business has strong momentum; and 4) mgmt has likely been conservative in its LT margin expectations. Raising estimates, which appear resilient to certain FX and OUS headwinds, and valuation at 13x our FY17E seems reasonable," said Mishan.

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 $47.09 yesterday.

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