UPDATE: Morgan Keegan Raises Price Target on Healthcare Services Group to $20

According to Morgan Keegan, Healthcare Services Group HCSG price target is raised to $20. Morgan Keegan said that its growth thesis for Healthcare Services Group, described in our September 27 Morgan Keegan Research Note, Benefiting From the Suffering of Others, is that while Medicare rate cuts to nursing homes could slightly increase contract churn, with HCSG canceling customers with deteriorating credit metrics, it expects this to be outweighed by new customers seeking cost savings from the company's housekeeping and dietary services. “We are raising our price target from $19 to $20. Coupled with the company's increased $0.64 annual dividend, this equates to 18% price appreciation potential given our conservative estimates.” Healthcare Services Group closed yesterday at $17.52.