UPDATE: Credit Suisse Upgrades LifePoint Hospitals to Neutral
Credit Suisse raises its rating on LifePoint Hospitals (NASDAQ: LPNT) to Neutral from Underperform and raise its price target to $42 from $37 as bad debt concerns did not materialize.
Credit Suisse says, "Bad Debt Up, But Under Control: Over the past year, bad debt has risen 17%. However, strong revenue and cost controls have allowed the company to manage the pressure while collections remain at historical levels. With recent declines in uninsured ER visits, we do not expect bad debt to accelerate. Moreover, greater disclosure by mgmt around the components of "self-pay" (which we learned includes Medicaid pending & indigent payment from municipalities) has given us greater comfort in the bad debt line item."
LPNT closed at $38.84 a share on Monday.
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