Deutsche Bank Maintains Buy Rating, $35 PT On LNCR

Deutsche Bank is maintaining its Buy rating and $35 PT on Lincare Holdings Inc. LNCR “Much like in 2006, when the 36-month rental cap cut was lurking in the future (out to 2009), we believe LNCR investors are again in need of looking far in advance to understand the ‘normalized' earnings of the company,” Deutsche Bank writes. “As such, we present a long-term model which factors in the key years for CB -- 2011, 2013 and 2016. Importantly, the model and its DCF-based valuation output fully support our target price and, in our view, serve as a solid basis for understanding how/why LNCR shares have formed an attractive base in the mid/high-$20s.” Lincare Holdings closed Wednesday at $26.40.