Deutsche Bank Reiterates Buy On Universal Health Services Shares, $125 PT


In a research report issued today, Deutsche Bank analyst Darren Lehrich reiterated a Buy rating on Universal Health Services (NYSE:UHS) with a price target of $125.00.

Lehrich noted, “UHS Q3 results were slightly better than expectations with adjusted EPS of $1.36 vs. Street $1.35 and up 23.5% YoY. Q3 EBITDA before NCI was $350M, adjusting for $44M legal expense, vs. Street $353.2M. Q3 was driven by solid volumes in both acute and behavioral segments and good progress with segment margins. Given how management described intra-quarter trends, we believe the result is in-line with buy-side expectations. SS acute care revs +7.9% (vs. Q2 +11.5%) and SS acute margins up +390 bps YoY. Behavioral results remained very solid with SS revs +6.2% (vs. Q2 +5.9%) . UHS did not adjust its 2014 guidance of EPS $5.55-$5.85 vs. Street $5.73, but implicitly we believe the Q4 range ($1.34-$1.64 vs. Street $1.51) should be biased to upper end given the recent closing of the Cygnet (U.K.) behavioral deal. *CC 9am Friday 10/28; Dial-in 877-648-7971.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Darren Lehrich has a total average return of 16.9% and a 77.4% success rate. Lehrich has a 27.7% average return when recommending UHS, and is ranked #56 out of 3349 analysts.

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