UPDATE: Deutsche Bank Upgrades LHC Group to Buy

Deutsche Bank raises its rating on LHC Group

to Buy from Hold and raises its price target from $16.50 to $22.50 a share on the company's strategic competitive position. Deutsche Bank says, "Q4 results were largely in-line w/expectations, but we believe the upside risks associated w/LHCG's previously announced strategic alternatives process remain compelling in light of its strategic positioning, recent resolution of gov't settlement and its undemanding valuation (5.8x 2012E EBITDA less NCI of $64M). We are raising our 12-month PT to $22.50 or 6.5x 2013 EBITDA and moving to Buy as we see LHCG's strategic alternatives process as multiple-enhancing." LHC closed at $17.02 a share on Wednesday.