Deutsche Bank Has Buy On Health Management Associates

Deutsche Bank has a Buy rating and a $13 price target on shares of Health Management Associates, Inc. HMA. In a note to clients, Deutsche Bank writes, "HMA annc'd a definitive agreement to acquire the $600M rev Mercy Health Partners, a 7-hospital (1,300+ bed) integrated health system based in the Knoxville market. The transaction is valued at $525M and represents an important major market deal that could be a "needle-mover" for rev/EPS growth. Mercy will add +10% growth over HMA's 2011 rev base, and offers a multi-yr accretion opp'y in the context of efficiencies and growth in a region w/solid demographics. Reiterate Buy on a strong growth outlook, w/tangible upside potential from Mercy." Shares of HMA are up 12 cents to $10.90 as of this writing.