Morgan Keegan Raises PT On Healthcare Services Group To $19.25

Morgan Keegan has published a research report on Healthcare Services Group HCSG after the company matched revenues estimates during its 4Q earnings report. In the report, Morgan Keegan writes "Healthcare Services Group reported fourth quarter EPS of $0.14, matching our estimate and $0.01 short of consensus. Revenues topped our estimate as both the Housekeeping and Dietary divisions generated double-digit growth. Margins were lower than our estimate but we believe that the growth in costs, due in part to management infrastructure build-out, should moderate. We continue to believe that nursing home operators' concerns about Medicaid reimbursement, along with an increased focus on complex clinical programs, will fuel a continuing trend to outsource housekeeping, laundry, and dietary services to HCSG." Morgan Keegan maintains its Outperform rating and has raised the price target from $18.75 to $19.25. Healthcare Services Group closed yesterday at $17.16.