Credit Suisse Reiterates Outperform, Lowers Price Target On HCA Holdings As Guidance Falls Short

In a report published Wednesday, Credit Suisse analyst Ralph Giacobbe reiterated an Outperform rating on HCA Holdings (NYSE: HCA), but lowered the price target from $83.00 to $81.00.

In the report, Credit Suisse noted, "With 4Q results in-line with preannouncement in early January, focus was on newly issued 2015 guidance, which came in below consensus (EBITDA of $7.5M at midpoint vs consensus of $7.73M). We note there were several moving parts, including some 'non-operational' headwinds that were greater than expected. Nonetheless, guidance fell below expectations, and we are lowering our estimates to incorporate the updates. On the positive side, we were encouraged with the confidence around organic growth assumption (4.5%-5%) at the higher end of its targeted goal, see the potential for upside within HCA's reform assumptions, and expect continued capital deployment to help augment growth. We maintain Outperform rating, but are lowering our target price to $81 (from $83)."

HCA Holdings closed on Tuesday at $69.89.