TeamHealth Management Unfazed By Envision-AmSurg Deal

Bank of America Merrill Lynch's Kevin Fischbeck pounded the table on his bullish rating on shares of TeamHealth Holdings Inc TMH in a research note Monday morning.

Following Envision Healthcare Holdings Inc EVHC's deal for AmSurg, Fischbeck spent time with TeamHealth CFO David Jones last week. The BofA analyst noted "the company is not concerned with its two main competitors merging as it sees a lot of value in its unique capabilities of offering post-acute hospitalist services to its hospital customers."

Fischbeck highlighted "a full pipeline of deals" and focus on "operational improvement at IPCM."

"TMH will continue to do tuck-in deals and there could be regional groups that are for sale. There is still potential for further consolidation of larger players, e.g. ED or anesthesia operators backed by private equity," according to Fischbeck.

BofA Merrill maintained a Buy rating and $52 price objective on shares of TeamHealth.