Risk Continues to Weigh on Gentiva Health Services (NASDAQ:GTIV)

Gentiva Health Services (NASDAQ:GTIV) will remain under pressure throughout 2011, as risk continues to weigh on the performance results of the company.

FBR says, "Gentiva continues to be in the midst of integrating the Odyssey hospice business into its operations and simultaneously stimulating growth in a business that has been relatively stagnant. From our vantage point, the challenge for the company remains generating that growth without overspending to do so. We expect the company to focus on its operations in 2011 and reinvest cash generated toward debt repayment. There remains considerable risk associated with the pending SEC/SFC investigations, the potential for 2014 rebasing, continued Medicare pricing cuts, and increased regulatory scrutiny. We view these risks as meaningful overhangs to the stock and impacting the valuation of GTIV shares."

FBR Capital reiterates an "Underperform" rating on Gentiva Health Services (GTIV), which closed Tuesday at $25.51, losing $0.25, or 0.97 percent. FBR raised their price target on Gentiva from $22 to $23.