CYH - Community Health stock slumps 9% after Bofa cuts rating amid rising rates
Community Health Systems (NYSE:CYH) stock fell ~9% June 15 after Bank of America downgraded the stock to Neutral from Buy, and cut its price target on the shares to $5.50, from $7.50. Bofa Global Research Analyst Kevin Fischbeck noted that the decision was taken as the firm expects the company's valuation to be compressed amid a period of soaring interest rates considering CYH's high leverage. The agency thinks that Community's turnaround should lead to a continued improvement in same-store growth while also improving margin. But the firm was less hopeful that the valuation will show such improvements in the current market scenario, considering the company's above average leverage. Fischbeck, however, noted that all of Community's debt is fixed, thus it does not have interest rate exposure, plus the company has no significant maturities till 2026. Meanwhile, the SA Quant Rating on CYH is Hold, which factors in measures such as the company's profitability
For further details see:
Community Health stock slumps 9% after Bofa cuts rating amid rising rates