Jefferies Reiterates Buy on HealthSouth

Jefferies is out with its report today on HealthSouth HLS, reiterating Buy. In a note to clients, Jefferies writes, "While news that one of HLS' LTCHs received a document subpoena from the HHS-OIG could provide some near-term pressure on shares, we note that issues such as this are a common risk for providers with exposure to government reimbursement. Given that a recent internal and external audit of the facility in question provided no adverse findings, we reiterate our Buy and $33 price target, especially on any pricing weakness." Shares of HLS closed Wednesday at $26.03, up 1.01% from Tuesday's close.