Oppenheimer Believes LHC Group (LHCG) Still Has Room to Grow


In a report released today, Michael Wiederhorn from Oppenheimer maintained a Buy rating on LHC Group (LHCG), with a price target of $117. The company’s shares closed yesterday at $106.39, close to its 52-week high of $114.22.

Wiederhorn wrote:

“LHCG reported Q4:18 adj. EPS of $1.03 (GAAP: $0.66), topping OPCO/Street consensus of $1.02E. Adj. results exclude $0.23 of closure relocations and $0.14 AFAM/other acquisition expenses. Although home-based trends remained robust, driven by solid growth and improved managed-care negotiations, the facility-based contribution decreased 340 bps due to slower growth in two larger LTACs to limit the beat this quarter. Nevertheless, driven by the continued ramp of AFAM, LHCG issued solid FY2019 EPS guidance of $4.15-$4.25 compared to OPCO/Street consensus of $4.14/$4.18E.”

According to TipRanks.com, Wiederhorn is a top 100 analyst with an average return of 14.7% and a 68.9% success rate. Wiederhorn covers the Services sector, focusing on stocks such as Community Health, The Ensign Group, and Centene Corp.

LHC Group has an analyst consensus of Hold.

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Based on LHC Group’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $20.55 million. In comparison, last year the company had a net profit of $18.44 million.

Based on the recent corporate insider activity of 49 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 LHCG in relation to earlier this year.

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LHC Group, Inc. provides post-acute health care services to patients through its home nursing agencies, hospices and long-term acute care hospitals. The company operates through the following business segments: Home Health Services, Hospice Services, Community-Based Services and Facility-Based Services.

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