Barclays Maintains an 'Overweight' on HCA Holdings (HCA); June Quarter Review: After the Call
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Price: $404.68 -1.71%
Rating Summary:
23 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
23 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays maintains an 'Overweight' on HCA Holdings (NYSE: HCA) price target of $40.00.
Barclays analyst says, "We believe yesterday's 19% decline in HCA's share price (versus a 0.6% decline in the S&P 500 and other hospital companies down 4%-5%) represents a buying opportunity. The stock is now trading at 9.6x 2012 EPS and 6.3x 2012 EBITDA, which is a discount to the group average of 11.3x on a P/E basis (excluding CYH) and essentially in line with the group average on an EV-to-EBITDA basis. Our estimates assume that the case mix weakness in 2Q11 continues indefinitely, and this may be overly conservative. Also, keep in mind that there are a lot of positive things going on at HCA, including the upside from HealthONE, which will help offset much of the impact from the lower Medicare case mix."
"We are lowering our 2011 EPS estimate to $2.68 (from $2.75) and lowering 2012 to $2.90 (from $2.98). Our 2012 EBITDA estimate remains relatively unchanged at $6.6 billion, given our view that the $200 million upside from HealthONE offsets the downside from lower Medicare case mix."
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.
Barclays analyst says, "We believe yesterday's 19% decline in HCA's share price (versus a 0.6% decline in the S&P 500 and other hospital companies down 4%-5%) represents a buying opportunity. The stock is now trading at 9.6x 2012 EPS and 6.3x 2012 EBITDA, which is a discount to the group average of 11.3x on a P/E basis (excluding CYH) and essentially in line with the group average on an EV-to-EBITDA basis. Our estimates assume that the case mix weakness in 2Q11 continues indefinitely, and this may be overly conservative. Also, keep in mind that there are a lot of positive things going on at HCA, including the upside from HealthONE, which will help offset much of the impact from the lower Medicare case mix."
"We are lowering our 2011 EPS estimate to $2.68 (from $2.75) and lowering 2012 to $2.90 (from $2.98). Our 2012 EBITDA estimate remains relatively unchanged at $6.6 billion, given our view that the $200 million upside from HealthONE offsets the downside from lower Medicare case mix."
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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