UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on Vanguard Health Systems

In a report published Friday, Deutsche Bank reiterated its Buy rating on Vanguard Health Systems

, and raised its price target from $17.00 to $19.00. Deutsche Bank noted, “Fiscal Q2 wrap - VHS delivered in-line FQ2 EBITDA, and we believe it remains on track to meet FY 2013 guidance for $550-$575M in EBITDA. At the mid-point, EBITDA growth over FY 2012 would be +4%, which highlights good operational flexibility given $50M of annualized pressure in Arizona, Medicare sequestration and lower HITECH EHR payments yoy. Our 2014 EBITDA est was raised slightly in a ‘First Blush' note published earlier today; we based the increase primarily due to higher health plan contribution. And in light of slightly higher out-year EBITDA and lower net debt vs. FQ1 due to good CFFO, our 6.2x EV/EBITDA multiple brings the PT to $19 from $17; reiterate Buy.” Vanguard Health Systems closed on Thursday at $13.97.