UPDATE: Goldman Sachs Raises PT on Community Health Systems on Acquisition Plans
In a report published on Wednesday, Goldman Sachs analyst Matthew Borsch raised the target price on Community Health Systems (NYSE: CYH) from $44.00 to $48.00 and maintained a Neutral rating on the company.
In the report, Goldman Sachs stated, "CYH announced plans to acquire HMA [Health Management Associates, Inc] for $13.78/sh in a cash plus stock transaction...We view this proposed deal as a long term strategic positive for CYH as it would allow the company to consolidate its presence in markets like Florida, Pennsylvania, Tennessee and Texas... We raise our 12m target to $48...rewarding CYH for increased focus on capital allocation and shareholder returns.
Community Health Systems closed Tuesday at $45.58.
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