Cantor Fitzgerald Reiterates a Hold Rating on Community Health

By Jason Carr

In a report released today, Joseph France from Cantor Fitzgerald reiterated a Hold rating on Community Health (NYSE: CYH), with a price target of $7. The company’s shares closed last Friday at $4.87, close to its 52-week low of $4.15.

France observed:

“Restructuring continues. CYH has announced three divestiture packages over the past six weeks that we believe could significantly reduce its debt load. On September 29, it agreed to sell four hospitals (541 beds) in Mississippi and Florida. On October 17, it agreed to sell an 80% interest in its Home Health division for $128 million. On November 2, CYH announced that it is working on seven transactions involving 17 hospitals, home care and non-hospital real estate that it believes could generate $1.2 billion of proceeds.”

According to TipRanks.com, France is a 3-star analyst with an average return of 2.1% and a 44.1% success rate. France covers the Healthcare sector, focusing on stocks such as WellCare Health Plans, Envision Healthcare, and Acadia Healthcare.

Currently, the analyst consensus on Community Health is Hold and the average price target is $9.29, representing a 90.8% upside.

In a report issued on November 3, Barclays also reiterated a Hold rating on the stock with a $10 price target.

The company has a one year high of $30.14 and a one year low of $4.15. Currently, Community Health has an average volume of 6.62M.

Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CYH in relation to earlier this year.

Community Health Systems, Inc. is engaged in management and operation of general acute care hospitals. The company operates through the following segments: Hospital Operations and Home Care Agencies Operations. he Hospital Operations segment provides inpatient and outpatient healthcare services. The Home Care Agency Operations segment includes in-home outpatient care services. The company was founded in March 1985 and is headquartered in Franklin, TN.