UPDATE: Deutsche Bank Upgrades IPC The Hospitalist Company to Buy on Good Growth Prospects

In a report published Thursday, Deutsche Bank analyst Darren Lehrich upgraded the rating on IPC The Hospitalist Company IPCM from Hold to Buy, and raised the price target from $36.00 to $48.00. In the report, Lehrich noted, “IPCM continues to churn out strong growth, and the valuation multiples we've been using in our PT have been too stingy in the context of this company's near-term and longer-term growth prospects. We're moving off our 9x EV/EBITDA / 16x P/E targets and taking them to 10x and 18.5x, respectively. These targets are more in-line with the physician management group's recent averages, and reflect our view that IPCM's ability to sustain mid/high-teens earnings growth looks pretty solid in light of its hiring and productivity metrics, M&A prospects and untapped opportunities in the post-acute arena.” IPC The Hospitalist Company closed on Wednesday at $39.82.