Morgan Keegan Reiterates Outperform on Team Health Holdings (TMH)

Morgan Keegan is out with a research report this morning, where it reiterates its Outperform rating on Team Health Holdings TMH; it has as a $16.00 price target on the stock. The MK analysts cited a recent meeting with company management and institutional investors, where management explained why the trend toward outsourcing of its services remains strong. Pressures on hospitals to enhance emergency department operations, combined with Team's expertise and efficiency, are the foundations that the analysts' earnings growth assumptions are based on. As for valuation, the analysts noted, “Our price target for Team Health is $16.00. We base this on a long-term growth-rate target P/E multiple of 14 applied to our 2011 EPS estimate of $1.13.”