Lehman Upgrades HCA
Lehman upgrades HCA Inc. (HCA ) to overweight from equal-weight.
Analyst Adam Feinstein says consistent with his stabilization theme issued at start of 2005, he is upgrading the health care facilities sector to positive from neutral with further evidence of improving bad debt expense.
He believes the biggest driver to stock price performance will continue to be incremental news flow related to bad debt expense. He notes several positive data points related to bad debt expense over past week, including HCA's positive preannouncement and a more positive tone from hospitals in his field checks.
Feinstein raises his $53 HCA target to $61.