Canaccord Genuity Starts Team Health (TMH) at Buy

(Updated at 1.58 PM)

Canaccord Genuity initiated coverage on Team Health (NYSE: TMH) with a Buy rating and a price target of $74.

Analyst Richard Close said, "TMH is a leader in acute-care clinical outsourced services, with a stable organic growth model enhanced by a robust M&A strategy that has delivered ~30% revenue growth in 1H’15. We favor the recently announced acquisition of IPCM, despite driving TMH's leverage up to ~5x, which we view as an offensive move to generate long-term growth. IPCM's exposure to the post-acute market (~26% of revenue) should allow the combined company to offer end-to-end clinical services to providers seeking to adopt value-based payment models and manage care across the continuum. Furthermore, we believe this transformational merger will offer (1) cross sell opportunity, (2) new exposure to the post-acute market and (3) $1.5B+ incremental Medicare spend exposure for the bundled payment care improvement (BPCI) program."

For an analyst ratings summary and ratings history on Team Health click here. For more ratings news on Team Health click here.

Shares of Team Health closed at $59.67 yesterday.

You May Also Be Interested In

• BofA Securities Resumes American Eagle Outfitters (AEO) at Underperform
• SoundThinking (SSTI) PT Lowered to $8 at Cantor Fitzgerald
• Cantor Fitzgerald Reiterates Overweight Rating on Applied Materials (AMAT)