UBS Maintains a 'Buy' on HCA Holdings (HCA); Tough Start Out of the Gate Post IPO

UBS maintains a 'Buy' on HCA Holdings (NYSE: HCA) price target lowered from $40 to $36.

UBS analyst says, "Q2 results well below expected, but not as far below as consensus implies...Guidance embeds Medicare mix bounce back, stock price reaction does not...We lower 2011/2012 EBITDA/EPS to $6.05B/$2.59 and $6.23B/$2.75 respectively, implying low end of 2011 HCA guidance and flat EBITDA growth in 2H’11 (ex-HCIT $), followed by 3% EBITDA growth in 2012. We note our #’s do not include upside from debt refi/HealthONE acquisition which we estimate at $0.15/$0.15, leaving potential for EPS to move north of $3.00 next yr even in bad case scenario."

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

Shares of HCA Holdings closed at $27.97 yesterday.

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