Deutsche Bank Reiterates Hold Rating on LHC Group (LHCG)

Deutsche Bank is out with a research report this morning, where it reiterates its Hold rating on LHC Group Inc. LHCG; it has a $34.00 price target on the stock. The DB analysts cited the recent Medicate rate cut for its further downside revision to estimates. The analysts are maintaining their positive bias on LHCG's fundamentals, though. The analysts believe the company is increasingly positioned as a leader from its investments in technology and infrastructure, while its JV strategy could further establish LHCG as a partner-of-choice as hospitals develop post-acute models for ACOs and/or bundled payments in the future. As for valuation the DB analysts remarked, “Our $34 12-month valuation target is based on 6.5x 2012 EV/EBITDA, which is a discount to the 7x forward EV/EBITDA multiple of our coverage universe due to regulatory risks.”