Auriga Reiterates a 'Buy' on Universal Health Services (UHS); Flu Activity Down, But Inpatient Volume Increased

Auriga reiterates a 'Buy' on Universal Health Services (NYSE: UHS) price target of $51.00.

Analyst, Glen Losev, said, "Flu activity is significantly below 1Q11 in UHS markets, which should impact volume growth rate in 1Q12. More important however, non-flu related inpatient admissions increased in 1Q12 based on our channel checks and Las Vegas inpatient trend has also improved. Unemployment rate and economic activity are improving in UHS markets in line with national -- this should lower bad debt levels as the year progresses and may drive EPS above our current projection. We continue to view UHS as well-positioned to benefit from: 1) its diversified business model (acute and behavioral), 2) incremental benefits from the PSYS acquisition, 3) very strong behavioral trends, and 4) incremental benefit once economic activity improvement occurs in Las Vegas market which we expect to take place in 2012."

For an analyst ratings summary and ratings history on Universal Health Services click here. For more ratings news on Universal Health Services click here.

Shares of Universal Health Services closed at $44.14 yesterday.

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