Bank of America Reiterates Neutral Rating, $57 PT on LifePoint Hospitals Following Bell Hospital Agreement

In a report published Friday, Bank of America analyst Kevin Fischbeck reiterated a Neutral rating and $57.00 price target on

. In the report, Bank of America noted, “LPNT signed a definitive agreement to acquire Bell Hospital, a 25-bed critical access hospital in Ishpeming, MI. Through its JV with Duke, LPNT already operates one hospital in the area, Marquette General Hospital, a 315-bed regional medical center. While terms of the deal were not disclosed, AHD shows the facility had ~$40 million in revenue last year and an operating loss. We estimate it could end up adding $0.05 or 1% to EPS over time assuming margins could be improved to 15%. We are not changing our estimates at this time, pending the closing of the transaction. While the deal is small, it underscores that hospital deal pipeline remains active as stand alone hospitals and small chains are under pressure and looking to sell.” LifePoint Hospitals closed on Thursday at $48.69.