Healthcare Services upgraded to Hold on better end market at Jefferies

Jefferies upgraded Healthcare Services Group to Hold from Underperform with a price target of $14, up from $8.50. The firm’s analysis of the company’s nursing home end-market shows that fundamentals for the industry have hit trough levels. This should bode well for Healthcare Services’s growth, but the elimination of the company’s dividend will likely drive fund rotation and multiple compression, the analyst tells investors in a research note. As such, the firm views the stock as fairly valued at current levels.