Time to be greedy with Psych Solutions

By Geert De Lombaerde Posted on October 29, 2009 at 12:05 pm

Avondale Partners analyst Kevin Campbell says investors should take the opportunity to buy shares of Psychiatric Solutions after their big drop Wednesday. Campbell, who has an ‘outperform’ rating on the shares, says that — despite the Q3 rise in charity care — Psych Solutions’ fundamental story is still compelling.

“[D]emand for its services remains strong and valuations remain at the bottom of its historic range. We recognize that there are valid concerns about increased levels of charity care; however, we believe the issue is manageable.”

Campbell’s lowered target of $28 is almost 50 percent above where the company opened trading this morning. Shares of Psych Solutions (Ticker: PSYS) are up about 3 percent so far today.

permalink

Tags: analyst actions, Avondale Partners LLC, behavioral health care, Kevin Campbell, Psychiatric Solutions Inc., specialty hospitals  

Comments