UPDATE: Citi Raises PT on Community Health Systems to $38 (CYH)

Citi is out with its report today on Community Health Systems (NYSE: CYH), raising its price target from $34 to $38.

In a note to clients, Citi writes, "We are raising our CYH 12-month price target from $34 to $38 to reflect a 9.6x forward EPS multiple applied to our existing 2013 EPS estimate of $3.97 (previously 2012). As stated above, we see 5%-9% plausible EPS from a normalization of CYH's 1-day admit % down to the industry average (plausible 2013 downside range implied is $3.61-3.77). We expect the near-term valuation multiple to remain discounted to the group from the possibility of additional announced regulatory scrutiny."

Shares of CYH closed Thursday at $32.62, down 0.64% from Wednesday's close.