UPDATE: JP Morgan Initiates Universal Health Services at Overweight on Diversification
JP Morgan initiated coverage on Universal Health Services (NYSE: UHS) with an Overweight rating and a $59 price target.
JP Morgan commented, "UHS offers the dual benefits of a strong, differentiated base business profile including ~65% of EBITDA coming from the faster growth behavioral segment as well as compelling potential upside from 2014 Healthcare Reform implementation. Our JP Morgan Healthcare Reform Model estimates that UHS has the potential to see double-digit EBITDA upside from reform relative to our baseline model, which we do not believe is fully appreciated by the market given the company's business mix. In addition, we see the base business as growing 1-3% faster than peers due to strong behavioral segment positioning."
Universal Health Services closed at $46.47 on Monday.
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