Credit Suisse Reinstates Coverage on CYH, THC, MOS and SAP

In a research report published today, Credit Suisse reinstated coverage on a number of stocks. Community Health Systems CYH was reinstated with an Outperform and a target price of $35. In the report, Credit Suisse states, "We are reinstating coverage on shares of Community Health Systems with an Outperform rating and $35 target price. While we acknowledge the overhang caused by Tenet's allegations, our analysis of ER metrics gives us comfort, and we believe the risk of any potential fine/settlement should be manageable and is more than discounted in the current stock price. Going forward we expect mgmt to continue to seek out growth opportunities via acquisition, and the company's broad and diversified footprint should help as underlying economic trends improve." Tenet Healthcare Corporation THC was reinstated with Outperform and a price target of $7.50. In the report, Credit Suisse states, "We are reinstating coverage on shares of Tenet Healthcare (THC) with an Outperform rating and $7.50 target price. After rejecting Community's offer, pressure is on for the management team to prove that the CYH's offer undervalued the company. While we have our concerns around the sustainability of recent trends, and the company's lofty longer term expectations, the magnitude of the valuation discount appears steep." Mosaic Co MOS was also reinstated with Outperform. The price target was set at $85. In the report, Credit Suisse states, "We are reinstating coverage on MOS with an Outperform rating and a $85 target price. We believe MOS offers a compelling risk/reward profile given favorable farmer economics and strong long-term potash fundamentals while downside phosphate price risks tied to the upcoming new Middle Eastern supply appear fully priced in. Our EPS estimates are $4.26, $6.00, and $6.31 for fiscal 2011, 2012, and 2013 respectively." Credit Suisse also initiated coverage on Saputo Inc. (SAP) with Outperform. The price target was set to C$55. Credit Suisse stressed Saputo's strong sales as a reason for its decision to put its rating to Outperform. The report states, "Saputo's double-digit US cheese volumes growth has exceeded the low- single-digit growth in the industry. We see continued momentum. The recent DCI Cheese Company, Inc., (DCI) acquisition provides a boost in U.S. specialty cheese sales and should allow Saputo to grow its U.S. cheese sales by ~29% in fiscal 2012. We forecast ~14% U.S. revenue growth in fiscal 2013 as Saputo continues to capitalize on organic/nonorganic growth opportunities. The acquisition and consolidation of volumes has been a typical modus operandi, but the latest U.S. acquisition in DCI is different. Rather than cost synergies, we believe DCI is more about trying to gain revenue synergies with low integration risk. DCI provides Saputo upside into a new customer channel, U.S. club stores." Saputo's shares closed on Monday at $46.98. Mosaic added 2.03% yesterday to finish the day at $66.75. In today's pre-market trading, its shares rose 1.12% to stand at $67.50. Tenet Healthcare closed at $6.26 yesterday, while Community Health Systems lost 0.07% to close the day at $28.21.