UPDATE: Morgan Stanley Reiterates On Envision Healthcare As New Contract Wins Drive Growth

In a report published Thursday, Morgan Stanley analyst Andrew Schenker reiterated an Overweight rating on

, but removed the $33.00 price target. In the report, Morgan Stanley noted, “EVHC reported 1Q14 adj. EBITDA of $110M vs. consensus of $111.5M and MS' est. of $114.2M. EmCare and AMR reported adj. EBITDA of $71.4M and $38.6M, respectively. Both segments were propelled by new contract wins/starts. However, EmCare new contract revenue was offset by a $6.7M increase in start-up compensation costs due to buyout provisions, sign on bonuses, and temporary staffing costs. However, going forward, the company has modified its contracts so clients will share the costs for accelerated starts in under 60 days.” Envision Healthcare closed on Wednesday at $34.41.