UPDATE: Oppenheimer Initiates Coverage on Envision Healthcare on Premier Operator Position


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In a report published Monday, Oppenheimer analyst Michael Wiederhorn initiated coverage on

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Envision Healthcare Holdings (NYSE: EVHC) with an Outperform rating and $33.00 price target.In the report, Oppenheimer noted, “We are initiating coverage of Envision Healthcare with an Outperform rating and a $33 price target, or 18% upside from current levels. In our view, Envision is the premier operator in two highly fragmented industries through its two subsidiaries: EmCare in the hospital-based physician outsourcing business and American Medical Response (AMR) in the emergency transport market. Overall, this is a compelling growth story, with favorable pricing power, a promising M&A opportunity, significant upside from its new Evolution Health business and a proven management team. Furthermore, with ~20% of volumes from self-pay sources, Envision is uniquely positioned to benefit from the Affordable Care Act's coverage benefits between 2014 and 2016.”Envision Healthcare Holdings closed on Friday at $26.84.
Posted In: Analyst ColorInitiationAnalyst RatingsMichael WiederhornOppenheimer