UPDATE: Deutsche Bank Downgrades Vanguard Health Systems on The Announcement That THC Plans to Acquire VHS

In a report published on Tuesday, Deutsche Bank analyst Darren Lehrich downgraded

from Buy to Hold and raised the price target on the company from $16.50 to $21. In the report, Deutsche Bank stated, "We expect the deal to close before calendar year-end 2013, and put very low probabilities on another bidder given the friendly nature of the deal. We note the transaction values VHS at $4.3 bln (including $2.5 bln of net debt), which equates to ~8x CY 2013E adjusted EBITDA of ~$550 million, which is consistent with some other precedent deals by strategic buyers in the space." Vanguard Health Systems closed on Monday at $20.70.