UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Raises PT on LifePoint Hospitals on Updated Estimates
In a report published Wednesday, BMO Capital Markets reiterated its Market Perform rating on LifePoint Hospitals (NASDAQ: LPNT), and slightly raised its price target from $41.00 to $42.00.
BMO Capital Markets noted, “LifePoint posted a significant EPS beat for 4Q12. Operating revenues were aided by acquisitions but same-facility revenue per adjusted admission increased modestly as well during the quarter. An uptick to bad debt expense and meaningful use expenditures offset some of the top-line growth but EBITDA was still stronger than our estimate. Management issued 2013 guidance, showing a boost in revenues (driven largely by completed acquisitions) but contraction of EPS YOY. While the company's EBITDA forecast contained consensus for 2013, EPS was far below our previous estimate. Our estimates now include higher depreciation expenses paired with continued IT investments and some additional bad debt in 2013. We believe that 2014 earnings potential has pushed hospital valuations beyond fundamental support. We do not see enough potential upside to shares to get constructive here.”
LifePoint Hospitals closed on Tuesday at $44.86.
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