RBC sees bright growth outlook for healthcare services cos

Pennant group

10/06/2021 15:01

(Repeats to widen distribution)
    ** RBC Capital Markets says it expects continued topline
growth and margin expansion for some healthcare services
companies, after outperformance vs other healthcare sub-sectors
YTD
    ** Brokerage retains positive stance on HCA Healthcare
 HCA.N , Surgery Partners  SGRY.O , UnitedHealth Group  UNH.N ,
Humana Inc  HUM.N , and CVS Health Corp  CVS.N 
    ** Says with the Biden administration's focus on economic
stimulus and infrastructure, the healthcare regulatory and
reimbursement backdrop remains benign
    ** Believes decline in COVID-19 cases will drive an uptick
in healthcare utilization and remains bullish on most hospitals
and home health providers and some health insurers
    ** Says its preference for health insurers is leaning
towards those with diversified services, such as UNH and HUM
    ** Upgrades hospital operator Community Health Systems
 CYH.N  and home health co Pennant Group  PNTG.O  to
"outperform" from "sector perform" 
    ** Brokerage raises PTs on CYH, HCA, SGRY, UNH, CVS, Acadia
Healthcare  ACHC.O , Tenet Healthcare  THC.N  and lowers Anthem
Inc  ANTM.N  and Universal Health Services  UHS.N  to "sector
perform" from "outperform"

 (Reporting by Amruta Khandekar)
 ((Amruta.Khandekar@thomsonreuters.com;))