Piper Jaffray Raises Price Target Ahead of LHC Group's (LHCG) 4Q Earnings Report; Expects In-Line Results

Piper Jaffray reiterated an Overweight rating on LHC Group (NASDAQ: LHCG), and raised the price target to $55.00 (from $45.00), ahead of the company's 4Q earnings report. Piper Jaffray expects in-line to modestly better Q4 results driven by low-single digit organic growth and strong acquisition contribution. LHCG reports results after the close on Wednesday, March 2 and will host a conference call on Thursday.

Analyst Kevin Ellich commented, "We expect LHCG to report solid Q4 results; however, we think FY16 EPS guidance could be lower than Street estimates due to the company's long-term acute care hospital (LTACH) business and costs associated with recent acquisition activity, as well as higher interest expense. 2015 was a good year for LHCG with the completion of several acquisitions including three recent deals: Halcyon Hospice, Nurses Registry, and Home Health Corp. While the pullback in the stock has created a more normalized valuation, we would wait until after FY16 guidance is issued after the close on Wednesday (3/2) before adding to positions. Based on this outlook, we have lowered our FY16 EPS estimate to $2.00 from $2.20, initiate FY17 estimates including EPS of $2.20, and lower our PT to $45."

For an analyst ratings summary and ratings history on LHC Group click here. For more ratings news on LHC Group click here.

Shares of LHC Group closed at $36.84 yesterday.

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