Oppenheimer Maintains Outperform On Envision Healthcare Holdings Following Business Updates
In a research report published today, Oppenheimer analyst Michael Wiederhorn maintained an Outperform rating on Envision Healthcare Holdings (NYSE:EVHC) with a $44.00 price target, which represents a potential upside of 19% from where the stock is currently trading.
The report follows yesterday’s news that the company’s EmCare business has entered into two agreements to acquire Emergency Medical Associates (EMA) of Parsippany, N.J. and Scottsdale Emergency Associates, LTD (SEA) of Phoenix, Ariz. The company also reported that it expects 2015 full-year Adjusted EBITDA to be $653 to $665 million and Adjusted EPS to be $1.42 to $1.50.
Wiederhorn observed, “Envision Healthcare issued solid FY2015 guidance, which is in line with OPCO/Street expectations. Management noted that Q1:15 EPS will be roughly 19-20% of full-year EPS/EBITDA guidance (or $0.27-$0.30 vs Street $0.30) due to normal seasonality and payroll taxes.”
The analyst continued, “Overall, the market has been bracing for the loss of the Medicaid Parity payments, but clearly EVHC’s business remains on solid footing, while the accretive acquisitions and fuel declines are offsetting the impact. Given the strong long-term growth prospects, we maintain our Outperform rating and would continue to be buyers.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Wiederhorn has a total average return of 23.6% and a 89.1% success rate. Wiederhorn has a 15.8% average return when recommending EVHC, and is ranked #56 out of 3425 analysts.