UPDATE: Deutsche Bank Downgrades IPC The Hospitalist Company to Hold Following Q2 Results

In a report published Friday, Deutsche Bank analyst Darren Lehrich downgraded the rating on

from Buy to Hold, but reiterated the $48.00 price target. In the report, Deutsche Bank noted, “IPCM's Q2 results were slightly below expectations due primarily to a sequential deceleration in encounter (volume) growth and flattish yoy margins. While 13.5% revenue and EBITDA growth is respectable, we believe IPCM's forward trading multiple (20.5x P/E and 11.4x EV/EBITDA) demands slightly more, and thus an earnings miss with decelerating fundamental trends seems disappointing. While we expect IPCM's EPS growth to track 14-15% over the next 24 months, we believe decelerating encounter growth (due to weaker hospital census and modestly higher physician turnover) poses some risk to the story. Moving to Hold on a more balanced risk/reward equation.” IPC The Hospitalist Company closed on Thursday at $52.12.