Banc of America Raises Estimates for Triad Hospitals

Analyst Gary Taylor says that management's history of exceeding expectations gives him confidence in margin expansion

Banc of America raises estimates for Triad Hospitals (TRI ) after the company issues guidance of $0.54-$0.56 in 2001 EPS on revenues of $2.67-$2.69 billion and $1.40-$1.48 in 2002 EPS on reveunes of 3.36-$3.42 billion.

Analyst Gary Taylor says that the management's history of exceeding expectations gives him confidence in margin expansion. He says he has modest 5.8% 2002 same-store revenue growth assumption. Taylor raises his 2001 EPS estimate to $0.56, from $0.50 and he raises 2002 estimate to $1.44, from $0.83.

He thinks the company is now the cheapest stock in the group, poised for near-term appreciation following likely positive analyst meeting later Tuesday. Taylor has a $36 price target on the stock.

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