Jefferies Maintains a 'Buy' on Health Management (HMA); Good Q3 Fuels Optimism For Now
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Price: $10.54 --0%
Rating Summary:
4 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
4 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies maintains a 'Buy' on Health Management (NYSE: HMA) price target lowered by $1 to $11.00.
Jefferies analyst says, "Good Q3 results sets a positive tone for HMA and the hospital sector. While HMA's Q3 volumes were anemic, they were better than expected. HMA's M&A pipeline will almost certainly yield accretive acquisitions not currently reflected in our forecast. Medicare reimbursement fears will likely keep stock in check NT."
"We are pleased by HMA's Q3 results and improved volumes. The company's recently closed $525MM acquisition of Tennova, a group of seven hospitals located in East TN generating $600MM of revenue and ~$45MM of EBITDA, will be EPS breakeven in Q411 but could yield nice EBITDA synergies in FY12. Our revised FY12 EPS estimate of $0.93 (from $0.89) assumes Tennova's EBITDA rises to $55MM. Not included in our forecast is the high probability of additional acquisitions."
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 $8.74 yesterday.
Jefferies analyst says, "Good Q3 results sets a positive tone for HMA and the hospital sector. While HMA's Q3 volumes were anemic, they were better than expected. HMA's M&A pipeline will almost certainly yield accretive acquisitions not currently reflected in our forecast. Medicare reimbursement fears will likely keep stock in check NT."
"We are pleased by HMA's Q3 results and improved volumes. The company's recently closed $525MM acquisition of Tennova, a group of seven hospitals located in East TN generating $600MM of revenue and ~$45MM of EBITDA, will be EPS breakeven in Q411 but could yield nice EBITDA synergies in FY12. Our revised FY12 EPS estimate of $0.93 (from $0.89) assumes Tennova's EBITDA rises to $55MM. Not included in our forecast is the high probability of additional acquisitions."
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 $8.74 yesterday.
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