Bank of America Merrill Lynch Maintains Neutral on HealthSouth

Bank of America Merrill Lynch is out with its report on HealthSouth HLS, maintaining Neutral. In a note to clients, Bank of America Merrill Lynch writes, "Our Neutral rating reflects our view that the slow down in core volume growth will be augmented by bed expansions, de novos and acquisitions. However, the slow down in same store volumes comes at an unfortunate time when HLS will be facing less than inflationary rate updates under the reform." Bank of America Merrill Lynch maintains a $30 PO on HLS. Shares of HLS closed Wednesday at $26.03.