The news late last week that Community Health Systems will miss analysts' Q2 expectations and has received a second subpoena from government investigators took the company's shares down a notch or two. Several analysts and bankers have told Reuters it also may have seriously delayed CHS' efforts to buy rival Health Management Associates. And with CHS having been seen as the frontrunner for Florida-based HMA, that could open the door for other bidders.
Separately on Friday, UBS analyst A.J. Rice added himself to the camp of analysts saying the Q2 warning and subpoena news isn't a huge deal. He reiterated his 'buy' recommendation on the company and merely trimmed his price target to $54 to $58. CHS shares (Ticker: CYH) have started the week down 1 percent and are testing their medium-term lows from late April and late May.