Local public health care companies Acadia Healthcare and Diversicare have new 5 percent owners, per recent Securities and Exchange Commission filings. First up, the investment arm of financial giant JPMorgan Chase says it has grown its stake in Acadia Healthcare by more than half over the past year. The company — which in early 2014 said it had sold off some of its holdings — now owns 5.7 percent of Franklin-based Acadia.
Also filing papers recently with regulators was San Francisco-based Osmium Partners, which focuses on small-cap value stocks. Its managers said last week they now own 5.1 percent of skilled nursing services provider Diversicare. Founded in 2002, Osmium manages about $130 million. Last month, a West Virginia company said it also has amassed a 5 percent Diversicare stake.
Richard Eastman at Robert W. Baird says investors should take a more cautious stance on Clarcor following the Franklin-based filtration company's earnings report. He has cut his rating to 'neutral' from 'outperform' and trimmed his price target to $59 from $62. Clarcor (Ticker: CLC) was changing hands at $58.40 in early Friday trading.
Analysts at JPMorgan have similarly lowered their opinion of Healthcare Realty Trust to 'neutral' from 'overweight' and taken down their target to $23 from $26. Shares of Healthcare Realty (Ticker: HR) were down slightly at $22.32 this morning. They've fallen about 8 percent in the past three months.
Officials at JPMorgan Chase filed papers Monday saying they owned just under 2 million shares of Acadia Healthcare at year's end. That's down from about 2.7 million a year ago and took the giant bank's stake in the Franklin-based behavioral health care provider below 5 percent. Acadia shares (Ticker: ACHC) had a monster 2013, climbing 103 percent. They closed Monday trading at $51.68.
JPMorgan & Chase analyst Justin Lake says local hospital heavyweights HCA Holdings and Community Health Systems are among the companies best positioned to benefit from the implementation of national health care reform. He has boosted his price target for HCA — which closed Monday trading at $42.16 — to $50 from $43 and now sees CHS (Ticker: CYH) climbing to $56 (up from $52) from its current $40ish level. In both cases, his target is higher than the Street's consensus.
Shares of Dollar General are getting a nice boost to start the week from Matthew Boss at JPMorgan, who has upgraded the stock to 'overweight' from 'neutral.' Boss' new price target is $64, more than 20 percent above where Dollar General (Ticker: DG) closed Friday trading. He says the discount retailer can continue to post double-digit EPS growth in the coming years, something that has been the subject of a little bit of debate lately.
JPMorgan analyst Kevin Milota has reversed course on Ryman Hospitality Properties just seven weeks after upgrading the hotel real estate investment trust to 'overweight.' A day after Ryman reported a disappointing Q2, Milota lowered the company's shares (Ticker: RHP) back to 'neutral.' There's no info on what his new price target is; the old one was $42 and Ryman closed Wednesday trading at $34.99.
Kevin Campbell at Avondale Partners has hiked his price target for shares of Acadia Healthcare to $41 from $35 after the company's Q2 beat. Campbell, who also lifted his EPS estimates ever so slightly, thinks the company can keep growing its same-facility revenues at a double-digit pace in the near future. Helping the cause are "the overall improvement in state budgets, the proposed Medicare rate increase (2.3% 10/1/13), and continued solid pricing from commercial payers," which should add about 2 percent to Acadia's prices through the end of next year. Acadia shares (Ticker: ACHC) were up more than 2 percent to about $37.80 mid-day Thursday, lifting the company's market cap close to $2 billion.
Three more analysts following Tractor Supply — all of them rating the company a 'buy — have updated their price targets for the Brentwood-based farm and ranch retailer. Christopher Horvers at JPMorgan now sees the stock climbing to $134 from $111, Scott Ciccarelli at RBC Capital now has a target of $128 to $118 and David Magee at SunTrust thinks the shares will climb to $140 versus his previous target of $136. Shares of Tractor Supply (Ticker: TSCO) were up almost 1 percent around lunch to about $122.
Kevin Milota at JPMorgan sees opportunity in the recent pullback in Ryman Hospitality Properties shares. He has raised his rating on Ryman to 'overweight' from 'hold' and lifted his price target to $42 from $40. Ryman shares (Ticker: RHP) are up slightly in Monday trading and have given up about 14 percent in the past month.
We believe the transition of the sales responsibility from the property level to the regional level led to reduced conversion activity, which fell short of Ryman's previous forecast. With that said, group bookings for 2014 and beyond remain strong, and we do not believe the softness in short-term group is indicative of a monumental slowdown in longer-dated group-booking activity.
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