Company Press Release
SOURCE: PHP Healthcare Corporation
Wasserstein Perella Securities Initiates Coverage on PHP Healthcare With Buy Recommendation, $22 Target
RESTON, Va., Feb. 23 /PRNewswire/ -- Wasserstein Perella Securities, Inc. has initiated coverage on PHP Healthcare Corporation (NYSE: PPH - news) with a ''Buy'' rating and a 12-month price target of $22.00. Jack M. Mazur, President and CEO of PHP Healthcare, said, ''It is quite a compliment for PHP to have a firm with Wasserstein Perella's reputation in healthcare express confidence in our company and initiate coverage.''
Jennifer Childe, Senior Analyst with Wasserstein Perella, stated: ''With its recent acquisition of 18 health centers covering 200,000 lives, PHP is on track to deliver top line growth of approximately 50% over the next several years, with potential earnings growth of at least 35%. If management's strategy is executed properly, we believe PHP's shares could appreciate more than 50% within 12 months. Given the level of conservatism we have employed, actual EPS growth and price appreciation could be well in excess of our projections.''
Kenneth Weixel, PHP Executive Vice President for Healthcare Strategy, noted that healthcare analysts from several investment banks, in addition to Wasserstein Perella, have visited PHP's New Jersey and District of Columbia operations recently. ''They have all been impressed with the management teams running these operations, especially with information systems and medical management,'' he said.
Mr. Weixel added: ''Our new long-term agreement in New Jersey, coupled with PHP's existing operations in the Mid-Atlantic and the Southeast, bring the Company's total revenues to a run rate of nearly $600 million, fourth among multi-specialty PPMs. PHP Healthcare is a much different company than it was just a few years ago, and the investment community is beginning to recognize this.''
A medical management company, PHP Healthcare Corporation manages medical risk through the acceptance of global capitation arrangements with HMOs and other healthcare payors. The Company also offers a full range of management services to the physician groups and hospitals that participate in provider- based networks developed by PHP. Because healthcare is a local service, PHP's managed healthcare delivery systems are tailored to the needs of individual communities and patient populations. Operating in 31 states, PHP has more than 7,500 physicians employed or under contract and responsibility for more than
300,000 covered lives.
Except for historical information, the statements preceding are forward- looking statements that involve risks and uncertainties. Investors are cautioned that such statements are only predictions and the actual events or results may differ materially. These forward-looking statements speak only as of this date. The Company
undertakes no obligation to publicly release the results of any revisions to the forward-looking statements made today to reflect events or circumstances after today, or to reflect the occurrence of unanticipated events.
SOURCE: PHP Healthcare Corporation
More Quotes and News: PHP Healthcare Corp (NYSE:PPH -news)
quote.yahoo.com
Related News Categories: health care |
