UPDATE: JP Morgan Initiates Vanguard at Neutral on Vanguard Health Systems on Relative Reform Leverage

JP Morgan initiated coverage on Vanguard Health Systems

with a Neutral rating and a $13 price target. JP Morgan noted, "We are initiating coverage of VHS with a Neutral rating and a Dec-2013 price target of $13 given that it is underleveraged to the upside from reform and overexposed to the downside. Our JP Morgan Healthcare Reform Model projects a smaller and shorter benefit for VHS from the coverage expansion than others in the group: mid single-digit EBITDA growth in 2014-15, vs. high single / double digits for most peers, before cuts turn the net impact negative for VHS in 2017." Vanguard Health Systems closed at $11.47 on Monday.