UPDATE: Deutsche Bank Downgrades HealthSouth Corporation to Hold; Valuation Full

Deutsche Bank downgraded HealthSouth Corporation

from Buy to Hold and lowered the price target from $28.50 to $25.00. Deutsche Bank commented, "HLS' revenue growth prospects remain underpinned by good organic volume trends, acceleration of de novos and JV/M&A opportunities. Despite our favorable view for "HLS the company," we see a more balanced risk/reward for "HLS the stock," with the potential for Medicare pressure over the next 12-24 months the key gaiting factor for HLS' valuation multiple. Hold more accurately reflects our stance on HLS shares." HealthSouth Corporation closed at $23.86 on Thursday.