Monday, December 6, 2010

Goldman (NYSE:GS) Raises EPS Estimates on Universal Health (NYSE:UHS)

After the acquisition of Psychiatric Solutions, Universal Health Services (NYSE:UHS) had their EPS estimates raised on them by Goldman Sachs, while having a "Neutral" rating maintained on them.

The reasoning by Goldman was the "expectation of sustained upside from mental health parity legislation as our channel checks have not uncovered evidence of health plans dropping mental health coverage."

Goldman raised their full year 2010, 2011, and 2012 EPS estimates to from $2.52 to $2.53, from $2.65 to to $3.60, and from $2.90 to $4.20.

Universal Health closed Friday at $41.73, dropping $0.33, or 0.78 percent. They have a market cap of just over $4 billion on them.

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