The analyst, Ralph Giacobbe, said in a note to his clients that Universal Health and other for-profit hospital operators are "in a position to take advantage of spending cuts by not-for-profits," according to the report. He said in the report that he believes that investors are overlooking the opportunity present by the troubles that not-for-profits are facing.
Mr. Giacobbe raised his price target on the stock to $48 per share from $46, and in afternoon trading, Universal Health shares were up $2.09 (5.7 percent) to $38.67, according to the report.
In addition to Universal Health, Mr. Giacobbe picked Community Health Systems, and its stock gained 71 cents (4.8 percent) to $15.46 in afternoon trading.
Read the Forbes.com report on Universal Health’s stock upgrade.
