Jefferies Raises IPC The Hospitalist's PT From $50 to $58 Following Strong 1Q (IPCM)

According to a recent report by Jefferies, IPC The Hospitalist IPCM posted strong first quarter results, which led to Jefferies raising its price target to $58 from $50. Jefferies explains, “IPCM's strong Q1 same-market encounter growth highlights the growing demand for hospitalist services. Management's efforts to expand its presence in the post-acute space and seek out additional hospital outsourcing opportunities should drive accelerated earnings growth in the coming years.” IPCM has not made any changes to its FY11 guidance due to management's policy, but Jefferies believes, “IPCM is well positioned to maintain a heightened level of acquisition activity for the foreseeable future.” Jefferies maintained its Buy rating. IPCM closed yesterday at $49.83.