UPDATE: Deutsche Bank Raises PT on HealthSouth Corp. Following Strong Q1 Results

In a report published Monday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on HealthSouth Corp.

, and slightly raised the price target from $26.50 to $27.50. In the report, Poole noted, “Q1 results were strong, underpinned by solid volumes (+4.1% yoy) and strong pricing (+3.1%). Total rev growth of +6% translated into +10% EBITDA growth and +21% EPS growth due to operating leverage and lower share-count. Relative to our model, HLS delivered better margins in particular. HLS reiterated 2013 revenue and EBTIDA guidance, and adjusted EPS upwards for to reflect the results of its tender offer -- although HLS is guiding to (or slightly above) the top-end based on its Q1 commentary. We maintain Hold as we see balanced risk/reward, but we nudge our PT to $27.50 ($26.50) on higher ests.” HealthSouth Corp. closed on Friday at $27.18.