Jefferies Raises Price Target, Estimates, and Maintains Buy Rating on Lifepoint Holdings (LPNT), Despite Recent Run-up In Stocks Price

Jefferies is reiterating its Buy rating on shares of Lifepoint Holdings (NASDAQ: LPNT) and is raising its price target from $49 to $51 following encouraging Q1 results.

The company posted solid Q1 results topping the Street's expectations for revenue, EBITDA, and EPS. LPNT posted a revenue of $888.6 million which grew 13% Y/Y, EBITDA of $143.8 million which grew 8.9% Y/Y, and an EPS of $0.89 which grew 11.3% Y/Y. The firm notes that improving volumes and pricing along with good cost control drove the upside.

LPNT's SS admissions declined only 1.2% Y/Y which is a positive showing from the publicly-traded rural hospital providers so far as Health Management Associates (NYSE: HMA) and Community Health Systems (NYSE: CYH) fell 3.4% and 3.9%.

The firm believes that the Lifepoint Holdings 2011 EPS guidance of $2.80$3.10 will prove to be conservative, but is only raising its FY11 estimate from $3.01 to $3.08. Jefferies also raised its FY12 estimate from $3.39 to $3.41.

For more ratings news on Lifepoint Holdings click here and for the rating history of Lifepoint Holdings click here.

Shares of Lifepoint Holdings closed at $41.61 yesterday.

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