UPDATE: Jefferies Upgrades Lincare Holdings; Risk-Reward Has Improved with Potential Takeout

Jefferies raises its rating on Lincare Holdings LNCR from Hold to Buy and raises its price target form $27 to $38. Jefferies comments, "Raising our rating on LNCR given our view that the company is now in play, whether or not the FT article -- which noted an ongoing sale process -- holds true. In the event that a deal for LNCR does not go through, we could see downside to $25, but we believe this pressure will be short-lived as mgmt will likely pursue an accretive acquisition fairly quickly (i.e., mgmt recently noted their interest in acquiring ROHI)." LNCR closed at $9.72 on Thursday.