Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Wachovia Keeps 'Market Perform' on Apria Healthcare


Wachovia keeps its market perform rating on Apria Healthcare (AHG).

Analyst William Bonello says Medicare reimbursement cuts included in the national prescription-drug bill is worse than he expected. He notes the respiratory drug reimbursement is set to be cut by 16% in 2004, and an additional 65% or more in 2005. He figures drug cuts could reduce earnings per share by about 18 cents in 2004 and 93 cents in 2005 -- all else held equal.

Furthermore, Bonello thinks bidding could limit growth rates in 2007 and beyond. While Apria has a competitive business model in a growing fragmented market, he thinks near-term appreciation may be limited due to potential changes in Medicare's reimbursement for respiratory therapy.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus