Deutsche Bank Reiterates Buy On LPNT

Deutsche Bank is reiterating its Buy rating on LifePoint Hospitals LPNT as the company's development strategy is picking up steam. In its report, Deutsche Bank writes, “Since the Duke JV was annc'd in Jan. 2011, LPNT has made notable progress in North Carolina w/3 annc'd deals and, in our view, the pot'l for a pipeline that could lead to NC being a key state within 4-5 yrs. In this report, we profile pot'l targets in NC and frame the earnings trajectory in the context of a more active M&A strategy over the next several yrs. Our analysis suggests LPNT could grow rev/EBITDA in the mid/upper-teens vs. consensus expectations of mid/upper single digits. As such, we see upside risk to ests and valuation multiple; reiterate Buy.” Deutsche Bank maintains its $50 price target on the stock as well. LPNT closed at $38.82 yesterday.