|
|
News Breaks | | | | February 11, 2013 | | 07:23 EDT |  | CYH | Community Health downgraded to Underperform from Market Perform at BMO Capital
BMO Capital downgraded Community Health due to valuation, Medicare Advantage rate risk, and macro pressures. Price target is $35. | |
|
News For CYH From The Last 14 Days Check below for free stories on CYH the last two weeks. |
|
|
| June 12, 2013 | | 10:16 EDT |  | CYH | Health Management rallies after hedge fund seeks to raise stake
Shares of hospital operator Health Management (HMA) are surging after a hedge fund indicated that it wishes to increase its stake in the company to over 15%, and nominate candidates to the company's board. WHAT'S NEW: In a regulatory filing last night, hedge fund Glenview Capital wrote that it was asking Health Management to repeal a "poison pill" provision that prevents any entity from obtaining more than a 15% stake in Health Management. At a minimum, Glenview wants the hospital operator to raise the minimum permitted stake to 25%. Furthermore, the hedge fund, which currently owns a 14.56% stake in HMA, stated that it would look to nominate candidates for Health Management's board. ANALYST REACTION: In a note to investors earlier today, Deutsche Bank analyst Darren Lehrich upgraded Health Management to Buy from Hold. Recent changes in Health Management's top executives, along with Glenview's statements, increase the chances that HMA will look to sell itself, Lehrich indicated. HMA could be worth more than $20 per share if it is sold, the analyst wrote. Meanwhile, the analyst also upgraded another hospital operator, Community Health Systems (CYH) to Buy from Hold. Community Health Systems, in which Glenview has a 10.7% stake, could look to acquire Health Management, the analyst believes. Community Health's profits could increase significantly if it buys Health Management, added the analyst. He raised his price target on Health Management to $18 from $12, and increased his price target on Community Health to $59 from $51. TODAY'S PRICE ACTION: In early trading, Health Management jumped 9% to $15.20, while Community Health advanced 2.7% to $50.30. | | | 10:14 EDT |  | CYH | On the Fly: Upgrade Summary
 Subscribe for More Information | | | 05:49 EDT | | CYH | Health Management upgraded to Buy from Hold at Deutsche Bank
Subscribe for More Information | | | 05:46 EDT | | CYH | Community Health upgraded to Buy from Hold at Deutsche Bank
Deutsche Bank upgraded Community Health (CYH) on expectations Glenview's activist stake in Health Management (HMA) could lead to upside. The firm sees potential for Community Health merging with Health Management given Glenview's cross-ownership of Community Health and the company's appetite for deals. Deutsche raised its price target for Community Health shares to $59 from $51 and also upgraded shares of Health Management. | |
|
|
|
|
|
|
