Jefferies Downgrades Rotech Healthcare (ROHI) to Hold

Jefferies downgraded Rotech Healthcare (OTCBB: ROHI) from Buy to Hold with a price target of $1.25 (down from $6).

The firm comments, "We are reducing our rating on ROHI to Hold given our belief that the stock will remain in the penalty box for the time being as investors react to ROHI's self-reported overbilling issue (which forced the company to delay its 10-Q filing and will likely result in prior period restatements) and weak Q1 results (while contractual billing issues were expected, organic growth was soft and SG&A expenses ticked up during the quarter)."

Jefferies cuts FY12 EPS from ($0.06) to ($1.00) and FY13 from $0.14 to ($0.58) .

For an analyst ratings summary and ratings history on Rotech Healthcare click here. For more ratings news on Rotech Healthcare click here.

Shares of Rotech Healthcare closed at $1.20 yesterday.

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