UPDATE: Deutsche Bank Downgrades LHC Group to Hold Following Good Q1 EPS Results

In a report published Friday, Deutsche Bank analyst Darren Lehrich downgraded the rating on LHC Group

from Buy to Hold, but reiterated the $23.00 price target. In the report, Lehrich noted, “Q1 EPS of $0.37 was nicely above consensus $0.33 / DBe $0.32. Although revs were 2-3% below, we believe the timing of a large deal (one month of Addus / 19 branches) had a lot to do with the top-line miss. Q1 margins were 120 bps above DBe and show good expense control in the face of a tough pricing environment. Organic census growth remains solid, and commentary about the Addus integration is encouraging. Net-Net: we believe Q1 puts it on track to meet or beat 2013 EPS guidance, thus making it stand-out further from peers.” LHC Group closed on Thursday at $23.36.