Dougherty & Co Downgrades IPC The Hospitalist Company (IPCM) to Neutral; Fine Company, But Lowering Forecasts On Poor Results

Dougherty & Co downgraded IPC The Hospitalist Company (NASDAQ: IPCM) from Buy to Neutral with a price target lowered from $56 to $41.

Dougherty analyst says, "While we ultimately believe earnings growth at IPCM can be stronger than 15%, this is clearly not happening now. On Friday, the stock traded to a range of $38-$39. At this price, we consider IPCM shares moderately attractive. Should this shares fall to a price in the mid $30’s or below, we believe they would represent an attractive value at this time."

"It is our sense that the elevated staffing expense highlighted in the company’s press release may well be at a different set of practices than had been an issue earlier in 2011. This is good and bad. The good news would be if the earlier issues had indeed been resolved as management had suggested previously. The bad news would be a new set of issues that now need to be addressed."

"2011 Revenue/Adjusted EPS from $462.6 million/$1.78 to $455.7 million/$1.70. 2012 Revenue/Adjusted EPS from $538.9 million/$2.25 to $504.2 million/$1.96."

For an analyst ratings summary and ratings history on IPC The Hospitalist Company click here. For more ratings news on IPC The Hospitalist Company click here.

Shares of IPC The Hospitalist Company closed at $45.65 yesterday.

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