Jefferies Cuts Price Targets on Universal Health Services (UHS) by 25% as Revenue and EBITDA Miss Expectations
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Price: $177.00 +2.39%
Rating Summary:
11 Buy, 19 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
11 Buy, 19 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies is reaffirming its Hold rating on shares of Universal Health Services (NYSE: UHS) while cutting its price target from $56 to $42.
The company reported earnings $0.01 higher than expected, but revenue and EBITDA were both below expectations. Acute SS revenue rose 3.1 percent, but was still below expectations. SS revenue increased 6.8 percent, ahead of expectations, but declined sequentially by 1.8 percent.
An analyst at Jefferies comments, "Management maintained FY11 guidance, but a shortfall in 3Q revenue and EBITDA from payor mix degradation in UHS's acute care segment is concerning. As long as unemployment remains high, we expect this trend to persist. UHS's behavioral health business is performing well, but strained state budgets and more Medicare scrutiny could create significant reimbursement headwinds."
The firm is lowering its FY11 and FY12 EPS estimates from $4.01 and $4.49 to $3.99 and $4.47.
For more ratings news on Universal Health Services click here and for the rating history of Universal Health Services click here.
Shares of Universal Health Services closed at $38.76 yesterday.
The company reported earnings $0.01 higher than expected, but revenue and EBITDA were both below expectations. Acute SS revenue rose 3.1 percent, but was still below expectations. SS revenue increased 6.8 percent, ahead of expectations, but declined sequentially by 1.8 percent.
An analyst at Jefferies comments, "Management maintained FY11 guidance, but a shortfall in 3Q revenue and EBITDA from payor mix degradation in UHS's acute care segment is concerning. As long as unemployment remains high, we expect this trend to persist. UHS's behavioral health business is performing well, but strained state budgets and more Medicare scrutiny could create significant reimbursement headwinds."
The firm is lowering its FY11 and FY12 EPS estimates from $4.01 and $4.49 to $3.99 and $4.47.
For more ratings news on Universal Health Services click here and for the rating history of Universal Health Services click here.
Shares of Universal Health Services closed at $38.76 yesterday.
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