Team Health Holdings Price Target Increased to $56.00 by Analysts at Stifel Nicolaus (TMH)
Investment analysts at Stifel Nicolaus lifted their price target on shares of Team Health Holdings (NYSE:TMH) from $52.00 to $56.00 in a note issued to investors on Thursday. The firm currently has a “buy” rating on the stock. Stifel Nicolaus’ price target would suggest a potential upside of 11.20% from the company’s current price.
The analysts wrote, “We are raising our target price for Team Health Holdings shares from $52 to $56. “We derive our target using our projected earnings, which include no incremental benefit from the Affordable Care Act (ACA, i.e. healthcare reform), as well as a projection of the benefit to Team when the ACA is fully implemented after 2016. We are updating our projected fully-phased in ACA benefit from $0.41 per share to $0.50 per share, given higher projections of visits and procedures and a lower proportion of uninsured visits than we made in our original projection. “We are also using our fully-phased in estimated earnings boost for valuation purposes rather than a one-year estimate, countered by a lower target price earnings multiple (21x vs. our prior 23x). We believe these adjustments more accurately reflect the likely course of the ACA (which we continue to estimate will provide insurance for less than half of the uninsured) and the growth that Team is likely to generate.”
Shares of Team Health Holdings (NYSE:TMH) opened at 50.36 on Thursday. Team Health Holdings has a 1-year low of $36.41 and a 1-year high of $52.18. The stock’s 50-day moving average is $49.85 and its 200-day moving average is $46.65. The company has a market cap of $3.537 billion and a P/E ratio of 38.43.
Team Health Holdings (NYSE:TMH) last posted its quarterly earnings results on Tuesday, April 29th. The company reported $0.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.04. The company had revenue of $641.65 million for the quarter, compared to the consensus estimate of $646.83 million. During the same quarter in the previous year, the company posted $0.44 earnings per share. The company’s revenue for the quarter was up 11.4% on a year-over-year basis. Analysts expect that Team Health Holdings will post $2.19 EPS for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at Goldman Sachs downgraded shares of Team Health Holdings from a “conviction-buy” rating to a “buy” rating in a research note on Monday, June 16th. Separately, analysts at Deutsche Bank downgraded shares of Team Health Holdings from a “buy” rating to a “hold” rating in a research note on Friday, June 6th. They now have a $53.00 price target on the stock. They noted that the move was a valuation call. Finally, analysts at RBC Capital raised their price target on shares of Team Health Holdings from $50.00 to $55.00 in a research note on Monday, May 5th. They now have an “outperform” rating on the stock. Two research analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. The stock has an average rating of “Buy” and a consensus price target of $54.00.
In other Team Health Holdings news, Chairman H. Lynn Massingale sold 15,000 shares of the company’s stock on the open market in a transaction that occurred on Monday, June 30th. The stock was sold at an average price of $49.96, for a total transaction of $749,400.00. The transaction was disclosed in a filing with the SEC, which is available at this link.
Team Health Holdings, Inc is a supplier of outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers in the United States, based upon revenues, patient visits, and number of clients.
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