Wells Fargo Downgrades Vanguard Health Systems (VHS) to Market Perform; Cutting Estimates - Concerns About Slowdown In Capex & Revenues

Wells Fargo downgraded Vanguard Health Systems (NYSE: VHS) from Outperform to Market Perform with a price target range of $10-12 from $19-21.

Wells analyst says, "We are concerned that the company’s planned reduction in its capital expenditures to $335-365 million from $400-450 million will lengthen the period of time it takes the company to make operational improvements and expand margins; this had been a significant part of our bullish thesis on the company. The company’s revised capital expenditure guidance appears to be due in part to reimbursement cuts along with slow payments by the state of Illinois which have caused an increase in receivables...lowering our FY2012E and FY2013E EPS to $0.71 and $0.79 from $0.81 and $1.03, respectively."

For an analyst ratings summary and ratings history on Vanguard Health Systems click here. For more ratings news on Vanguard Health Systems click here.

Shares of Vanguard Health Systems closed at $10.71 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Wells Fargo Downgrades Roku Inc. (ROKU) to Equal Weight
• Wolfe Research Downgrades T-Mobile (TMUS) to Peerperform
• AMD (AMD) to offer senior notes in four parts