Investment thesis for hospital stocks "solid" this year: Deutsche

|By:, SA News Editor

Deutsche Bank is out positive on hospital stocks for 2014.

"We continue to believe the investment case for hospitals remains solid for 2014," analyst Darren Lehrich says, adding that the firm "believes investors will gain increased evidence that coverage expansion from the ACA will reduce uncompensated care / increase margins -- even in the face of continued soft underlying inpatient volume trends."

As for specific picks, Lehrich lifts his target on HCA Holdings (HCA +1.5%) to $58 (from $56), representing upside of 16% from Tuesday's close.