Credit Suisse Raises Price Target on Universal Health Services (UHS), Raised EPS Guidance By $0.15

Credit Suisse is reiterating their Outperform rating and is raising their price target and estimates on shares of Universal Health Services (NYSE: UHS) as a result of the company increasing their EPS guidance.

The firm reports that UHS raised their 2011 EPS range by $0.15 to $3.65-$3.80 due to lowered borrowing costs on its credit facility. Credit Suisse comments that UHS remains their top pick in their sector and is raising their price target to $57 from $55. They are also raising their EPS estimates for 2011, 2012 and 2013 to $3.77, $4.33, and $4.76 from $3.62, $4.13, and $4.56.

The company also lowered their Tranche B margin by 1.0% to 3.0%. The firm states that, "beyond the credit facility changes mentioned above, we believe the revised guidance assumes that, going forward, LIBOR rates will rise above current levels, a potentially conservative assumption."

For more ratings news on Universal Health Services click here and for the rating history of Universal Health Services click here.

Shares of Universal Health Services closed at $46.97 yesterday.

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