UPDATE: Deutsche Bank Upgrades Gentiva Health Management to Buy

Deutsche Bank upgraded its rating on Gentiva Health Management

from Hold to Buy and raised its price target from $8 to $12.50. Deutsche Bank commented, "Our neutral stance had been underpinned by concerns about the co's debt covenants and, to a greater extent, the potential for Medicare hospice payment reform over the medium-run (2014 timeframe). While it is well-understood by the market that GTIV successfully amended debt covenants, we believe GTIV shares overly-discount the risk of hospice reform on a nearer-term basis. Based on our read of CMS' regs, we believe hospice payment reform is much further out -- thus giving GTIV time to execute better in hospice and de-lever. We see risk/reward much improved and upgrade to Buy." Gentiva Health Management closed at $6.11 on Wednesday.