Leerink Swann Starts Vanguard Health Systems (VHS) at Outperform, Sees 15%-20% EPS Growth
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Price: $21.01 --0%
Rating Summary:
2 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Leerink Swann initiated coverage on Shares of Vanguard Health Systems (NYSE: VHS) with a valuation range of $20-$22 and an Outperform rating.
The firm believes that VHS will be able to obtain 15-20 percent EPS growth over the next three to five year.
An analyst at Leerink Swann comments, "Our favorable view is based on the company's strong earnings growth outlook, successful track record, differentiated business model and attractive valuation. Importantly, since hospital stocks tend to move as a group, we believe investor expectations for the industry have come down a lot in recent months, and that with the group trading on average at 6.0x 2012E EBITDA and 9.3x 2012E EPS, valuation multiples are close to a bottom."
Leerink Swann's FY11 and FY12 EPS estimates are $0.29 and $0.95 while its revenue estimates are $4.91 billion and $6.26 billion. Its 2013 estimates are $1.15 and $6.56 billion.
The firm believes that VHS will be able to obtain 15-20 percent EPS growth over the next three to five year.
An analyst at Leerink Swann comments, "Our favorable view is based on the company's strong earnings growth outlook, successful track record, differentiated business model and attractive valuation. Importantly, since hospital stocks tend to move as a group, we believe investor expectations for the industry have come down a lot in recent months, and that with the group trading on average at 6.0x 2012E EBITDA and 9.3x 2012E EPS, valuation multiples are close to a bottom."
Leerink Swann's FY11 and FY12 EPS estimates are $0.29 and $0.95 while its revenue estimates are $4.91 billion and $6.26 billion. Its 2013 estimates are $1.15 and $6.56 billion.
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