Deutsche Bank On THC, ODSY

Deutsche Bank analyst Darren Lehrich had these takeways from recent meetings with three health care providers in Dallas - Tenet Healthcare Corp. THC, Odyssey HealthCare, Inc ODSY, and United Surgical Partners International, Inc (private). Tenet Healthcare's recent stumble with Australian health provider Healthscope has left investors questioning THC's growth strategies. Management has not apologized for scoping out the acquisition, but it has acknowledged that the move was premature. Lehrich summarized, "Current business trends likely pacing above expectations; we are confident in Street-high EBITDA estimates and think THC could be positioned to raise guidance at its next investor." Odyssey HealthCare recently agreed to be purchased at $27 a share by Gentiva Health Services, Inc. Lehrich said, "We continue to believe the deal accretion for GTIV is compelling – we still estimate $1.00 to $1.15 per share in 2011 or 40% accretive to GTIV. Based on this level of accretion, we think it is looking less likely that another strategic buyer will emerge in the go-shop period." Deutsche Bank currently rates THC Buy and ODSY Hold.