Community Health price target lowered to $7 from $11 at RBC Capital

RBC Capital analyst Frank Morgan lowered the firm’s price target on Community Health to $7 from $11 after its Q1 earnings miss but keeps an Outperform rating on the shares. The firm is "disappointed" to see the unfavorable shift in payor mix and higher medical specialty fees that overshadowed a strong volume recovery, but also encouraged by Community Health management’s confidence in a seasonal turn in commercial mix trends and reaffirmed guidance, the analyst tells investors in a research note.