Market Overview

UPDATE: Morgan Stanley Reiterates On Envision Healthcare As New Contract Wins Drive Growth

Share:
Related EVHC
Envision Healthcare's Bottom Line Will Grow 18% Next Year, So Buy: Cantor
Envision Healthcare and InTouch Health Partner to Provide Comprehensive Telemedicine Clinical Services

In a report published Thursday, Morgan Stanley analyst Andrew Schenker reiterated an Overweight rating on Envision Healthcare Holdings (NYSE: EVHC), but removed the $33.00 price target.

In the report, Morgan Stanley noted, “EVHC reported 1Q14 adj. EBITDA of $110M vs. consensus of $111.5M and MS' est. of $114.2M. EmCare and AMR reported adj. EBITDA of $71.4M and $38.6M, respectively. Both segments were propelled by new contract wins/starts. However, EmCare new contract revenue was offset by a $6.7M increase in start-up compensation costs due to buyout provisions, sign on bonuses, and temporary staffing costs. However, going forward, the company has modified its contracts so clients will share the costs for accelerated starts in under 60 days.”

Envision Healthcare closed on Wednesday at $34.41.

Latest Ratings for EVHC

DateFirmActionFromTo
Aug 2015KeyBancMaintainsOverweight
Aug 2015Cantor FitzgeraldMaintainsBuy
Jul 2015BarclaysMaintainsOverweight

View More Analyst Ratings for EVHC
View the Latest Analyst Ratings

Posted-In: Andrew Schenker Morgan StanleyAnalyst Color Price Target Analyst Ratings

 

Related Articles (EVHC)

View Comments and Join the Discussion!

Get Benzinga's Newsletters