Citi Sees 50% Upside In Community Health Systems (CYH)

Citi Investment Research sees 50% upside in shares of Community Health Systems

, after the company reported weaker than expected earnings. It has a $45 price target and a 1H rating on shares. In a note to clients Citi states, "Excluding a prior-period CA provider tax benefit recognized in 3Q10, CYH's revenues, EBITDA and EPS were slightly weaker than we had modeled. Implied 4Q10 guidance is also lower than our current published estimate. Nevertheless, we'd be buyers post-election on any material weakness in the shares as we do believe CYH can sustain SS margins in 2011 and add accretive acquisitions." Shares of CYH lost 44 cents yesterday to close at $30.34, a loss of 1.4%.