UPDATE: Citigroup Upgrades Community Health Systems to Buy on More Positive Near Term
Citigroup raises its rating on Community Health Systems (NYSE: CYH) from Neutral to Buy and increases its price target from $24 to $30.
Citigroup notes, "[W]e are upgrading CYH from Neutral to Buy as we assume a more positive view of the near-term (30day) risk/reward around the Supreme Court's healthcare reform ruling. …We are reducing the regulatory risk adjustment in our current target price methodology. Our new target price of $30 represents ~10x '13 P/E and 6.3x EV/EBITDA without any effect of the healthcare reform law."
CYH closed at $22.38 on Friday.
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