Two more analysts following Community Health Systems have reiterated their 'hold' ratings on the company's shares after its first-quarter earnings report. But Joe France at Cantor Fitzgerald has lifted his target to $42 from $35 and Barclays Capital's Josh Raskin now sees the stock climbing to $50 rather than $48. CHS (Ticker: CYH) ended Wednesday trading at $44.72.
Two of Nashville's publicly traded hospital chains got thumbs up from analysts Tuesday. Ralph Giacobbe at Credit Suisse said Community Health Systems' cost controls will serve it well in the coming quarter and hiked his price target to $55. Over at Deutsche, Darren Lehrich lifted his price target to $51 from $48. CHS shares (Ticker: CYH) closed Tuesday trading up about 1 percent at $45.57 after the company reported its Q1 numbers late Monday.
LifePoint Hospitals also got a little more love in the wake of its profit report late last week. Joe France at Cantor Fitzgerald hiked his price target to $45 from $40, but maintained his 'hold' rating. LifePoint's stock (Ticker: LPNT) ended Tuesday at $48 on the nose.
Analysts at Cantor Fitzgerald have begun covering shares of Acadia Healthcare with a 'buy' rating and a $35 price target that implies another 25 percent of upside from where the company (Ticker: ACHC) opened trading Tuesday. By Thomson/First Call's reckoning, the target is now the highest on the Street for Acadia. (Separately, Acadia execs said Tuesday they've wrapped up a $150 million debt raise and paid down $52 million in high-interest 2018 notes.)
In contrast, the sentiment is nowhere near as upbeat at Macquarie when it comes to Brookdale Senior Living. The firm's analysts launched coverage of the skilled-nursing provider with a 'neutral' rating in December but have already lowered their opinion to 'underperform.' We couldn't dig up any details as to whether it's a pure valuation call — the stock (Ticker: BKD) is up 15 percent year to date — or if there's more to the move.
A fistful of analysts tracking Community Health Systems came out firing on Monday, raising their target prices for the company's stock following its fourth-quarter earnings report late last week. Here's a rundown:
• Joe France at Cantor Fitzgerald: Reiterate 'hold,' lift target from $28 to $35
• Josh Raskin at Barclays: Reiterate 'equalweight,' lift target from $36 to $48
• A.J. Rice at UBS: Reiterate 'buy,' lift target from $44 to $52
• Frank Morgan at RBC Capital Markets: Reiterate 'outperform,' tweak target from $45 to $46
• Ann Hynes at Mizuho: Reiterate 'neutral,' lift target from $39 to $41
The upside most of these researchers saw early Monday is now even bigger: CHS (Ticker: CYH) rose early but gave way along with most of the market and closed trading at $40.08, down more than 4 percent on the day.
Cantor Fitzgerald analyst Joe France has lifted his price target for shares of hospital chain Vanguard Health Systems to $18 from $17. He has reiterated his 'buy' rating on the company, whose shares (Ticker: VHS) have climbed 40 percent over the past three months and are now changing hands around $14.70.
David Gagliano at Barclays Capital didn't do Noranda Aluminum shareholders any favors Thursday when he lowered his price target for the Franklin-based company to $7 from $8 following its Q4 report. Noranda (Ticker: NOR) shares gave up more than 11 percent Thursday but are recovering a bit this morning. In early trading, they were changing hands around $5.10.
Cantor Fitzgerald hospital analyst Joe France has become the latest follower of HCA Holdings to give a big lift to his price target. France on Tuesday told clients he sees shares of the Nashville-based hospital giant climbing to $45, up from his previous target of $35. HCA shares (Ticker: HCA) closed Tuesday's trading at $37.50.
Analysts at Barclays Capital have launched coverage of various health care providers and real estate investment trusts with mostly equalweight ratings. Among the companies they suggest investors accumulate is nursing home operator Brookdale Senior Living. They see shares of the company climbing to $31 from their current levels of around $27 (Ticker: BKD).
Cantor Fitzgerald analyst Joe France has come out swinging against LifePoint Hospitals, downgrading the Brentwood-based hospital operator to 'hold' from 'buy' and slashing his price target to $35 from $46. The potential is there to improve results, he says, but investors haven't had a lot to show for it.
We like its strategy, and the stock is not expensive — it sells at a discount to the group — but we do not believe that LifePoint's earnings leverage is better than the group at this time.
LifePoint shares (Ticker: LPNT) struggled mightily in early trading, falling more than 5 percent at one point, but they have caught a bit of a bid since then. At about 12:30 p.m., they were changing hands down 3 percent at $36.24.
Analyst Kevin Campbell at Avondale Partners has updated his models for Corrections Corp. of America and its main competitor, GEO Group, to account for their Q2 results and their plans to convert into real estate investment trusts. The result: He now has a $38 price target for Nashville-based CCA, up from $30. CCA shares (Ticker: CXW) closed Tuesday trading at $32.55 and have risen 60 percent year to date.
At Cantor Fitzgerald, Joe France has lifted his price targets for two local hospital operators. France now sees HCA Holdings (Ticker: HCA) climbing to $35 versus his previous target of $33 and expects Vanguard Health Systems shares (Ticker: VHS) can go to $15, up from 13.
Analyst Joe France at Cantor Fitzgerald has reiterated his 'buy' recommendation on shares of Vanguard Health Systems, which have erased their spring losses by rising 30 percent since Memorial Day. France now sees the stock going to $13, a level it last saw in August of last year. Vanguard this week reported a fiscal Q4 profit of more than $19 million.