Auriga Starts HCA Holdings (HCA) at Buy; Concern Over Decline in Medicare Acuity in 2Q Appears Overdone

Auriga initiates coverage on HCA Holdings (NYSE: HCA) with a Buy. PT $28.00.

Auriga analyst says, "We believe HCA is well-positioned to benefit from: 1) a strategy of market management by operating hospitals and satellites that are strategically positioned; 2) location of its facilities in markets with higher than average population growth and better economic growth potential; 3) margin expansion driven by company's scale and management's experience; and 4) a new healthcare services business venture, which may grow into a sizeable revenue and margin producer. We believe the above mentioned long-term profitability drivers, combined with attractive valuation, and our view that Medicare case mix decline in 2Q is an anomaly, overshadow any short-term risk associated with low economic growth expectations over the next six months."

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 $20.03 yesterday.

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