UPDATE: Morgan Stanley Initiates Health Management Associates at Underweight on

Morgan Stanley initiated Health Management Associates

with an Underweight rating. Morgan Stanley commented, "We think HMA is well positioned to benefit from healthcare reform and has manageable exposure to potential cuts being discussed as part of the deficit debate. However, we have a lower earnings trajectory for HMA through 2016 with a CAGR of 7.8% versus 9.1% on average for the other names after accounting for HCIT payments.Continued overhang from “60 Minutes” segment and related government investigations, which we think may weigh on admissions and multiples." Health Management Associates closed at $9.51 on Wednesday.