Universal Health upgraded to Outperform from Neutral at Baird

Baird analyst Michael Ha upgraded Universal Health to Outperform from Neutral with a price target of $236, up from $198. Heading into Q2 earnings, the firm reiterates it optimism on the managed care group. It has grown increasingly positive on Universal Health and names the stock its top hospital pick. The company has the most attractive risk/reward in the hospital group and is at the start of a “powerful multi-year margin improvement story that should drive significant outsized earnings growth,” the analyst tells investors in a research note. The firm says Universal Health’s performance has reached near-trough levels and it is optimistic on the prospect of potential margin recovery to drive both outsized earnings growth and multiple expansion.