Jefferies Cuts Price Target on Health Management (HMA), Debt Ceiling Remains Biggest Near-Term Concern
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Price: $10.54 --0%
Rating Summary:
4 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 14 | New: 11
Rating Summary:
4 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 14 | New: 11
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Jefferies is maintaining its Buy rating on shares of Health Management (NYSE: HMA) while lowering its price target by $1 to $12.
The company released its Q2 results with $1.395 billion in sales and EPS of $0.20, which topped the Street's estimates. Same hospital net revenue increased 4.2 percent.
HMA raised its full-year EPS guidance from $0.74-$0.78 to $0.76-$0.80, but decreased its outlook for same hospital admissions from +1 to -1 percent to 0 to -2 percent.
Health Management continues to focus of controlling its costs while improving its operations across all fields.
The firm reports that the new debt ceiling concerns remains to be the biggest near-term risk for the company.
An analyst at Jefferies comments, "Certainly, hospitals represent one of the biggest areas of Medicare spending, so it is possible that incremental cuts could be legislated. While this could be a near-term headwind for hospitals, it could also open up new acquisition opportunities, in our view."
The firm is raising its FY11 and FY12 EPS estimate by $0.02 and $0.01 to $0.77 and $0.89.
For more ratings news on Health Management click here and for the rating history of Health Management click here.
Shares of Health Management closed at $9.30 yesterday.
The company released its Q2 results with $1.395 billion in sales and EPS of $0.20, which topped the Street's estimates. Same hospital net revenue increased 4.2 percent.
HMA raised its full-year EPS guidance from $0.74-$0.78 to $0.76-$0.80, but decreased its outlook for same hospital admissions from +1 to -1 percent to 0 to -2 percent.
Health Management continues to focus of controlling its costs while improving its operations across all fields.
The firm reports that the new debt ceiling concerns remains to be the biggest near-term risk for the company.
An analyst at Jefferies comments, "Certainly, hospitals represent one of the biggest areas of Medicare spending, so it is possible that incremental cuts could be legislated. While this could be a near-term headwind for hospitals, it could also open up new acquisition opportunities, in our view."
The firm is raising its FY11 and FY12 EPS estimate by $0.02 and $0.01 to $0.77 and $0.89.
For more ratings news on Health Management click here and for the rating history of Health Management click here.
Shares of Health Management closed at $9.30 yesterday.
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