Goldman Sachs Reduces Accretive Health PT To $13

Accretive Health, Inc.

reported 3Q 2010 results, Goldman Sachs reports, noting that the EPS of $0.06 and adjusted EBITDA of $32.2 were both in-line with GS/Street estimates. “However, revenues of $158.4 were significantly below our estimate of $174.6mn and Street consensus of $172.4mn,” Goldman Sachs writes. “Management's revenue guidance now stands at $595mn-$607mn (vs prior GS/Street estimates of $645mn/$639mn), while 2010 EBITDA guidance was maintained at $43mn- $46mn.” As a result, Goldman Sachs is reducing its 12 month price target to $13 from $15, which is based on a blend of EV/EBITDA (50%), PEG (20%), and DCF (30%) valuation analyses. Accretive Health currently trades at $9.00.