GTIV) was upgraded from Neutral to Outperform based on its
strong revenues and strategic acquisitions. The company's second
quarter earnings surpassed the Zacks Consensus Estimate but lagged
the year ago results on the back of lower revenues, particularly in
the Home Health segment.
The company offers skilled nursing and therapy services,
paraprofessional nursing services and homemaker services primarily to
adult and elderly patients
through licensed and Medicare-certified agencies. It serves patients
in more than 420 locations across 41 states as of June 30, 2012, and
operates in the Home Health and Hospice segments.
Gentiva reported second quarter 2012 operating net earnings of $0.35
per share, $0.07 ahead of the
Zacks Consensus Estimate of $0.28, but lower than the year ago quarter
level of $0.47 per share.
Our six month target price of $13.00 equates to 10.5x our earnings
estimate for 2012. This price target
implies an expected total return of 18.1% over that period. This is
consistent with our Outperform
recommendation on the shares.
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