UPDATE: Credit Suisse Downgrades LHC Group to Underperform; Home Health Multiple Revised

Credit Suisse reduced its rating on LHC Group

from Neutral to Underperform with a reiterated $18 price target. Credit Suisse commented, "The Home Health group has outperformed this year (+47% avg) after several years of underperformance. While some of the rally is deserved off of a lower base/expectation, we believe premium valuation to other areas of healthcare services with similar or less government exposure is difficult to justify. Moreover, we still have some concerns with the operating environment and the continued risk to reimbursement and the potential for an industry-wide settlement related to government investigations are potential headwinds that give us pause." LHC Group closed at $18.54 on Monday.