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UPDATE: Stifel Reiterates On Team Health Holdings LLC On Projected ACA Benefit

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In a report published Thursday, Stifel analyst Robert Mains reiterated a Buy rating on Team Health Holdings LLC (NYSE: TMH), and raised the price target from $52.00 to $56.00.

In the report, Stifel noted, “We are raising our target price for Team Health Holdings shares from $52 to $56.

"We derive our target using our projected earnings, which include no incremental benefit from the Affordable Care Act (ACA, i.e. healthcare reform), as well as a projection of the benefit to Team when the ACA is fully implemented after 2016. We are updating our projected fully-phased in ACA benefit from $0.41 per share to $0.50 per share, given higher projections of visits and procedures and a lower proportion of uninsured visits than we made in our original projection.

"We are also using our fully-phased in estimated earnings boost for valuation purposes rather than a one-year estimate, countered by a lower target price earnings multiple (21x vs. our prior 23x). We believe these adjustments more accurately reflect the likely course of the ACA (which we continue to estimate will provide insurance for less than half of the uninsured) and the growth that Team is likely to generate.”

Team Health Holdings LLC closed on Wednesday at $50.36.

Posted-In: Robert Mains StifelAnalyst Color Price Target Analyst Ratings


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