Deutsche Bank Downgrades Lifepoint Holdings (LPNT) to Hold; Headwinds Appear Too Strong

Deutsche Bank downgraded Lifepoint Holdings (NASDAQ: LPNT) from Buy to Hold, price target lowered from $46.50 to $39.

Deutsche analyst says, "Similar to Health Mgmt Assoc (NYSE: HMA), we believe LPNT is capable of delivering double-digit EPS growth in 2012. For GARP/value investors, it may compare even more favorably to HMA since LPNT has a more flexible balance sheet, lacks investigation risk and has committed capital toward its accretive share buyback program. Fundamentally, LPNT’s biggest challenge is the lack of population growth in a number of its core hospital markets. Its market growth profile has been a key detriment to volume growth, despite heavy net physician growth in its markets."
LPNT’s M&A strategy has allowed it to improve the overall quality of its asset mix, but this strategy will be a multi-year process involving asset sales and M&A in faster-growth markets before LPNT finds the wind to its back from a secular volume perspective."

For more ratings news on Lifepoint Holdings click here and for the rating history of Lifepoint Holdings click here.

Shares of Lifepoint Holdings closed at $34.20 yesterday.

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