UPDATE: JP Morgan Initiates Health Management Associates at Neutral on Near Term Uncertainty

JP Morgan initiated coverage on Health Management Associates

with a Neutral rating and a $9 price target. JP Morgan commented, "Although reform should provide a solid boost, HMA offers relatively less upside potential from reform-based coverage expansion when compared to its peers according to our JPM Healthcare Reform Model. When this more modest EBITDA upside versus peers (~8% vs. ~10% group average) is coupled with company specific headline risks related to government investigations into admission practices and the potential for this to negatively impact future volumes as well as M&A prospects, we see HMA as a comparatively less attractive name in the group." Health Management Associates closed at $8.28 on Monday.