J.P. Morgan Gives Update on HealthSouth Corp Following 1Q11 Report

In a recent report published by J.P. Morgan, they are raising the EPS from $1.10 to $1.25 and Price Target from $26.00 to $28.00 on HealthSouth Corp HLS following 1Q11 report. In the report, J.P. Morgan cites, “Revenue was above our view by $8mm (about 1.5%) as outpatient pricing came in above our outlook and volumes were better than expected. Adjusted EBITDA in the quarter was $123.4mm, $9.3mm (8.1%) above our outlook. Against our outlook all expense lines came in better than our outlook with salaries and benefits (70bps), bad debt (40bps), G&A (30bps), and other op expense and supplies each 10bps better than our view.” HealthSouth Corp closed Friday at $25.63.