Oppneheimer Reports That LHC Group's Entry Point Finally Arrives

In a report published by Oppenheimer, LHC Group's LHCG entry point has finally arrived.

Oppenheimer said that, while they acknowledge that regulatory and reimbursement critiques of the company hold water, one area it's never concerned about with LHC Group is operational performance. “The company has rarely disappointed, and when it has, it's been short-lived. The FY2011 guidance issued by LHCG reflects one-time costs that will flow through the P&L in Q1, but the business is expected to return to normal profitability over the remaining quarters. While we are reducing FY2011E from $2.56 to $2.20 due to the guidance reduction, we are maintaining our FY2012 EPS estimate of $2.68 and our $36 price target. Overall, we believe the sell-off creates an attractive entry point, and we would be buyers for both the short and long term.”

LHC Group closed yesterday at $27.98.