UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Raises PT on Universal Health Services on Raised Estimates

In a report published Thursday, BMO Capital Markets analyst Jennifer Lynch reiterated a Market Perform rating on

, and raised the price target from $70.00 to $75.00. In the report, BMO Capital Markets noted, “Universal Health's acute care unit posted better-than-expected results for the third quarter, including same-facility revenue growth of 6.6%. Key services, such as inpatient and outpatient surgeries, moved into positive growth territory in the period helping to drive quarterly outperformance. The Temecula facility is now open for business and start-up costs are expected to be minimal next quarter (~$9M). Behavioral health continued to deliver strong same-facility admissions growth, although length of stay put some downward pressure on top-line expansion. The company anticipates some behavioral capacity expansion in the near term, which could come in the form of de novo projects or adding beds to existing service platforms. We are raising our estimates to reflect the TX Medicaid true up and stronger acute fundamentals, partially offset by continued pressure on behavioral length of stay.” Universal Health Services closed on Wednesday at $80.72.