UPDATE: KeyBanc Capital Markets Initiates Coverage on Envision Healthcare Holdings with Buy Rating, $40 PT on Positive Outlook

In a report published Wednesday, KeyBanc Capital Markets analyst Jason Gurda initiated coverage on

with a Buy rating and $40.00 price target. In the report, KeyBanc Capital Markets noted, “Expansion beyond emergency department (ED) staffing to include anesthesiology, hospitalists and other specialists is driving accelerated revenue growth at EmCare with the majority of new contracts for integrated or bundled offerings. EVHC has a proven track record of physician recruitment and a strong record of client retention. After cleaning up its portfolio of contracts in the last couple of years, EVHC's AMR segment has returned to growth, is expected to see margin improvement and stands to benefit from competitors' recent bankruptcy filings. Furthermore, we believe the business will be an early beneficiary to expansion of coverage given its regional exposure to the West Coast and the Northeast, where most states have agreed to expand Medicaid in 2014.” Envision Healthcare Holdings closed on Tuesday at $33.31.