UPDATE: Citigroup Upgrades Vanguard Health Systems to Buy on Healthcare Reform Ruling

Citigroup increases its rating on Vanguard Health Systems

from Neutral to Buy (both High Risk) and raises its price target from $11 to $12. Citigroup comments, "We are upgrading VHS from Neutral (2H) to Buy (1H) 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 $12 represents ~23x '13 P/E (ex-HCIT) and 6.1x EV/EBITDA without any effect of the healthcare reform law." VHS closed at $7.96 on Friday.