UPDATE: Deutsche Bank Downgrades Adeptus Health to Hold, Raises PT to Better Reflect Current Stance

In a report published Thursday, Deutsche Bank analyst Darren Lehrich downgraded the rating on Adeptus Health ADPT from Buy to Hold, but raised the price target from $35.00 to $36.00. In the report, Deutsche Bank noted, “We are downgrading shares of ADPT to Hold from Buy, although we adjust our 12-month price target to $36 (from $35). While ADPT is still in the early stages of its growth model, we believe the current valuation discounts much of the co's potential at 14.4x 2015E EV/EBITDA and 10.4x 2016E EV/EBITDA (EBITDA is adjusted to exclude start-up costs). ADPT shares have moved up 31% over the past month vs. 11% for the Russell 2000, and are now within 10% of our PT. As such, Hold better reflects our current stance.” Adeptus Health closed on Wednesday at $33.46.