Cantor Fitzgerald analyst Joseph France reiterated a Hold rating on Community Health (NYSE: CYH) today and set a price target of $6. The company’s shares opened today at $2.93, close to its 52-week low of $2.66.
France commented:
“. We reiterate our Neutral rating and $6 price target ahead of 2Q18 earnings, which we expect on Friday, 7/27/18. CYH has recently suffered weak volumes and high debt costs, although higher acuity has helped lift revenue per case. Cost-cutting and many divestitures have made quarterly comparisons difficult, and we expect that they continue to weigh on productivity, but we believe that CYH’s success restructuring its financials and repositioning its hospital portfolio is more important to its long-term outlook than near-term earnings. Sentiment improved by the Apollo/LPNT (Neutral) agreement could also help CYH, although the stock is already trading at 9.3x our 2019 EBITDA estimates (vs. 8.1x for its peers).”
According to TipRanks.com, France is a 5-star analyst with an average return of 10.9% and a 59.8% success rate. France covers the Services sector, focusing on stocks such as Cross Country Healthcare, Five Star Quality Care, and US Physical Therapy.
Community Health has an analyst consensus of Hold, with a price target consensus of $5.33, representing an 81.9% upside. In a report issued on July 16, SunTrust Robinson also reiterated a Hold rating on the stock with a $3 price target.
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The company has a one-year high of $9.89 and a one-year low of $2.66. Currently, Community Health has an average volume of 2.46M.
Based on the recent corporate insider activity of 34 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CYH in relation to earlier this year.
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Community Health Systems, Inc. engages in the management and operations of hospitals. It operates general acute care hospitals and related healthcare entities that provide inpatient and outpatient healthcare services. The company was founded in March 1985 and is headquartered in Franklin, TN.
