UPDATE: Goldman Sachs Downgrades HCA to Neutral

Goldman Sachs is out with its report today on HCA (NYSE: HCA), downgrading HCA from Buy to Neutral.In a note to clients, Goldman Sachs writes, "We downgrade HCA to Neutral from Buy as we now model lower revenue and EPS for 2011-13. We have also lowered our price target to $31 from $40. Our bullish thesis on HCA reflected our view that the company could out-execute its peers and meet or exceed our/Street targets despite headwinds from weak volume trends and reimbursement pressures. While HCA stock sold off (-19% today vs. SP500 -0.6%), more than the 2Q miss (-5% on EBITDA, -14% on EPS) would imply, the weaker-than-expected results come just four months after the IPO and we think will cost HCA credibility among investors that will take substantial time to re-build (in particular, the hoped-for ‘beat and raise' element of the story)."At the time of posting, shares of HCA were trading at $27.25, down 2.57% from Monday's close.