HCA Holdings, Inc. Message Board

  • albertbensworth albertbensworth Jul 26, 2011 10:23 AM Flag

    Goldman Sachs Downgrades HCA to Neutral

    Goldman Sachs is out with its report today on HCA (NYSE: HCA), downgrading HCA from Buy to Neutral.

    In a note to clients, Goldman Sachs writes, "We downgrade HCA to Neutral from Buy as we now model lower revenue and EPS for 2011-13. We have also lowered our price target to $31 from $40. Our bullish thesis on HCA reflected our view that the company could out-execute its peers and meet or exceed our/Street targets despite headwinds from weak volume trends and reimbursement pressures. While HCA stock sold off (-19% today vs. SP500 -0.6%), more than the 2Q miss (-5% on EBITDA, -14% on EPS) would imply, the weaker-than-expected results come just four months after the IPO and we think will cost HCA credibility among investors that will take substantial time to re-build (in particular, the hoped-for ‘beat and raise' element of the story)."

    Source: http://www.benzinga.com/analyst-ratings/analyst-color/11/07/1803000/update-goldman-sachs-downgrades-hca-to-neutral#ixzz1TDmjKrHB

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