UPDATE: JP Morgan Initiates Community Health Systems at Overweight on Reform-Based Coverage Expansion
JP Morgan initiated coverage on Community Health Systems (NYSE: CYH) with an Overweight rating and a $38 price target.
JP Morgan noted, "Community offers solid upside potential from reform-based coverage expansion, especially when considered against its 5.0x DEBT/EBITDA ratio. While leverage adds risk to the downside should the unforeseen occur, our JP Morgan Healthcare Reform Model estimates that CYH has the potential to see ~8.5% EBITDA upside from reform relative to our baseline model with its significant leverage leaving equity holders in the position to derive relatively outsized benefit in the form of stock price appreciation."
Community Health Systems closed at $30.32 on Monday.
Latest Ratings for CYH
|Jun 2015||Mizuho Securities||Upgrades||Neutral||Buy|
|Jun 2015||Wells Fargo||Upgrades||Market Perform||Outperform|
|Jun 2015||Raymond James||Downgrades||Outperform||Market Perform|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.