Mizuho Securities analyst Sheryl Skolnick is growing comfortable with the idea that outpatient treatments will be a growing source of revenue and profits at LifePoint Health. The Brentwood-based company's execs last week said the trend of rising outpatient surgeries continued this past spring, which led Skolnick to question whether hospital companies' results revolve as strongly around admissions as has long been assumed.
"The answer surprised us, but not enough to abandon the thesis that admits drive performance," Skolnick wrote on Monday, when she reiterated her 'buy' rating but trimmed his price target a bit to $93. Get more of her thoughts here.
LifePoint shares (Ticker: LPNT) are up slightly to $85.21 Wednesday morning. Year to date, they've risen almost 20 percent.
We still have a bit of hospital stock news to pass on in the wake of the Supreme Court’s decision in favor in health insurance exchange subsidies. Mizuho Securities’ Sheryl Skolnick has upgraded shares of LifePoint Health to ‘buy’ from ‘neutral’ and set a price target of $95.71, which leaves about 10 percent of upside. Skolnick points out that Brentwood-based LifePoint (Ticker: LPNT) already is “nicely FCF positive” and will benefit from the higher exchange enrollments that are expected.
Newly public Community Healthcare Trust has picked up coverage from analysts at Evercore ISI. They have set a ‘buy’ rating on the Cool Springs-based real estate investment trust and see it climbing to $22 in the coming quarters. Community Healthcare (Ticker: CHCT) closed Monday at $19.07.
Hospital stocks are seeing a lot of action after the Supreme Court ruled Thursday to uphold subsidies for consumers buying health insurance in states using the federal marketplace.
Avondale Partners analyst Paula Torch reiterated her 'market outperform' rating for HCA Holdings and raised the firm's price target to $103 from $90, saying the Supreme Court ruling "clears the runway for the multiple to expand."
Mizuho analyst Sheryl Skolnick has upgraded the stocks of Community Health Systems from 'neutral' to 'buy' and raised her $52 price target all the way to $83.90. On the flip side, CHS was downgraded by Raymond James John Ransom, who dropped the firm's 'outperform' rating to 'market perform.'
Also happening today:
• Leerink analyst Ana Gupta raised her price target for HCA from $95 to $100. She also raised her target for CHS to $70 from $60 and LifePoint Health from $75 to $85.
• Analysts at Oppenheimer raised their price target on HCA to $82 from $60 and CHS to $102 from $87.
• Jefferies analyst Brian Tanquilut raised his price target for HCA to $108 from $95 and CHS to $79 from $75.
Two longtime Healthways analysts on Friday cut their price targets for the population health management play after new and interim CEO Alfred Lumsdaine said 2015 profits will not meet expectations. But both Brooks O'Neil at Dougherty and Sean Wieland at Piper Jaffray are not telling investors to stop buying the company's shares, keeping Healthways at 'buy' and 'overweight' ratings, respectively. O'Neil's target for Healthways, which on Friday fell 20 percent to $12.40 (Ticker: HWAY), has come all the way down to $15 from $25. Wieland is staying more upbeat: His target now stands at $25.50, down from $27.
The skies are decidedly brighter for shareholders of Acadia Healthcare, which has climbed about 25 percent so far in 2015 after rising by about a third last year. Mizuho Securities analysts see even better days ahead and have launched coverage of the Franklin-based company with an 'outperform' rating at a price target of $84. Acadia (Ticker: ACHC) closed Friday trading at $76.47.
Mizuho analysts have hiked their rating on shares of Healthcare Realty Trust to 'buy' from 'neutral' and lifted their price target to $28 from $26. The upgrade is due in part to their optimism about REITs in general but they also note that Nashville-based Healthcare Realty (Ticker: HR) is a better value after its 11 percent year-to-date drop and that its "more granular" approach to business will serve it well going forward.
Mizuho hospitals analyst Ann Hynes has lowered her rating for shares of LifePoint Hospitals to 'neutral' from 'buy.' Her target for the Brentwood-based company, which opened trading this morning (Ticker: LPNT) at $74.47, is $76.60.
Analysts at Cowen like the prospects of the oil refining group despite the impact of low crude oil prices on other parts of the energy sector. Margins remain strong and summer travel should provide plenty of demand, they say, leading them to lift their estimates on a number of industry players, including Delek US Holdings. They have Brentwood-based Delek (Ticker: DK) climbing to $43 in the coming year from its current levels of about $39.
The third-quarter earnings report from Community Health Systems didn't wow too many people, with investors pushing the company's shares down more than 5 percent Tuesday. They did lead analyst Ann Hynes at Mizuho Securities to raise her target for CHS from $48 to $53, but that's barely above where the stock (Ticker: CYH) opened Wednesday morning. Bank of America/Merrill Lynch analyst Kevin Fischbeck, meanwhile, reiterated his 'buy' rating and $72 target for CHS. He says the Franklin-based company remains his top pick in the hospital space even if the post-Q3 guidance cut was "somewhat disappointing given the improving core and higher synergies."
Take away the maintenance/parts failures issues at Noranda Aluminum's big plant in Missouri and the company's Q3 report showed signs of promise. That's the message from analysts at Citigroup and BofA Merrill Lynch. Brian Yu at Citi raised his Noranda target to $5.20 from $4.60 while Timna Tanners, his counterpart at BofA, hiked her target to $4 from $3. The analysts are still cautious, though, and have kept ratings of 'neutral' and 'underperform,' respectively. In early Wednesday action, Noranda shares (Ticker: NOR) have clawed back some of the ground they lost Tuesday and are changing hands right around $4.
As they did earlier this month with National Health Investors, analysts at Mizuho Securities have launched coverage of Healthcare Realty Trust with a 'neutral' rating. Where Healthcare Realty differs a bit is in its lack of upside: Mizuho's researchers see the stock climbing to $26 in the coming quarters, up only slightly from today's levels (Ticker: HR) of just below $25.
Analysts at Mizuho Securities have launched coverage of National Health Investors with a 'neutral' rating and a price target of $69, which leaves about 10 percent of upside from where the stock (Ticker: NHI) closed Wednesday. Shares of Murfreesboro-based NHI are up about 12 percent year to date.
Two analysts following hospital industry leader HCA Holdings have hiked their price targets for the company following its Q2 profit report. At Oppenheimer, Michael Wiederhorn now sees HCA — which ended Tuesday trading at $65.07 (Ticker: HCA) — climbing to $74 in the coming quarter. That's up from $62. Ann Hynes at Mizuho has him beat by a dollar after lifting her target to $75 from $60. Both analysts recommend investors add to their HCA holdings.
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