Deutsche Bank Gives Health Mgnt Associates a Hold on CEO Departure

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In a report published on Wednesday, Deutsche Bank analyst Darren Lehrich gave
Health Management Associates HMA
a Hold rating with a price target of $12.00. In the report, Deutsche Bank stated, "We expect that the timing of the announcement will lead to increased focus on activity behind the scenes at the company following its rights offering plan last week. Newsome has been well-regarded by investors and a strong leader internally at HMA. Yet his tenure has been somewhat clouded by investigations and allegations from a “60 Minutes” episode – given that some of the alleged problems occurred during his watch as CEO. As such, we consider the retirement news as providing mixed signals. On one hand, HMA's C Suite turnover could lead to some uncertainty internally (operationally) and externally (from an M&A perspective). On the other hand, it could be a sign of additional issues yet to be disclosed, and this activity could ultimately lead to bigger changes, including value-creating strategic transactions and additional management changes." Health Management Associates is currently trading at $12.09.
Posted In: Analyst ColorPrice TargetAnalyst RatingsDarren LehrichDeutsche Bank
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