UBS Downgrades Province Healthcare
UBS Financial downgraded Province Healthcare (PRV ) to reduce from neutral.
Analyst Kenneth Weakly says Province recently reported a relatively solid second quarter vs. lowered expectations, however, it did not contend that the future outlook has improved significantly from current weak volumes. Weakly believes volatility for hospital investors "will be with us for some time" due to uncertainty and a still-shifting macro environment. He notes weakness in the labor market, as even hospital employment shows relative weakness; this may not bode well for third-quarter volume trends. The analyst says Province stock is trading at a 20% premium to his 12% long term growth rate for the company. He has a $9.50 price target for the stock.