HealthSouth (NYSE:HLS) Surges on Upwardly Revised Earnings Outlook

HealthSouth (NYSE:HLS) closed Monday's trading session up over 10 percent on the increasing of their fourth-quarter earnings outlook

Jefferies (NYSE:JEF) also said that "given the industry's favorable fundamentals, mgmt's proven track record, and the potential for additional near-term deleveraging, we believe shares remain attractively valued."

In response Jefferies increased their full year 2010 and full year 2011 EPS estimates from $1.69 and $1.70 to $1.79 and $1.79 to meet their new outlook.

Jefferies is maintaining their "Buy" rating on HealthSouth, which closed at $23.60, gaining $2.19, or 10.23 percent. Jefferies boosted their price target on them from $24 to $25.