Zacks Investment Research has downgraded shares of ambulatory surgery center company AmSurg to 'underperform' and with a price target of $23, citing continued economic uncertanties that could hinder volumes, as well as bottom-line pressures from higher interest expenses and a higher tax rate.
Shares of AmSurg (Ticker: AMSG) closed Friday at $25.29.
AmSurg has lost the first round of its legal fight against a former executive it says breached his contract by hiring away his former subordinates after leaving the Nashville ambulatory surgery center company. Outpatient Surgery magazine reports that a Nashville judge dismissed the case after Frank Principati, a former AmSurg division president, argued the Tennessee court lacked jurisdiction over the case because he lives and works in Pennsylvania.
An AmSurg attorney declined to comment to the magazine. It's unclear whether the company will move the case to Pennsylvania.
For the back story, see the Post's July story on AmSurg's suit.
- 30% on attainment of company earning targets,
- 30% on attainment of personal performance goals,
- 20% on targets related to surgery center profits, and
- 20% on annual earnings of acquired and de novo centers formed during 2011.
While AMSG trades at a discounted valuation and is favorably leveraged to a recovery in health care service volumes, DB continues to believe the fundamental outlook in the ASC space remains challenging due to excess capacity and weak pricing power.Shares of AmSurg (Ticker: AMSG) closed at $21.87 on Tuesday. The company has struggled with low procedure volumes in recent quarters, but investors anticipate a turnaround this year from favorable provisions in the health reform law. Analyst Paul Quinn at RBC Capital Markets has downgraded shares of Louisiana-Pacific to 'sector perform' from 'outperform.' His price target of $10 leaves no upside — LP shares (Ticker: LPX) closed Tuesday trading at $10.01 — but is still a good bit more upbeat than UBS researcher Gail Glazerman's.