UPDATE: J.P. Morgan Raises PT on HCA Holdings on Expected Coverage Expansion

In a report published Monday, J.P. Morgan analyst Justin Lake reiterated an Overweight rating on HCA Holdings

, and raised the price target from $39.00 to $46.00. In the report, Lake noted, “We think health care reform should be a meaningful net positive for the hospital industry, especially over the early years of healthcare reform implementation, as coverage expansion drives lower bad debt and an uptick in utilization, which should more than offset a variety of negative impacts including government funding cuts and potential employer dumping into the exchanges. HCA also has scale advantages as the largest private hospital operator in the U.S. and is diversified geographically, yet it also benefits from local market density, with the #1 or #2 market share in most of its local markets. We also view the company's experienced management team as a strong positive.” HCA Holdings closed on Friday at $39.31.