UPDATE: Citigroup Reiterates on Universal Health Services on Good Market Position

In a report published Thursday, Citigroup analyst Gary Taylor reiterated a Buy rating on Universal Health Services (NYSE: UHS), and raised the price target from $84.00 to $92.00.

In the report, Citigroup noted, “We are raising our 12-month price target on shares of UHS from $84 to $92. We reiterate our Buy rating (particularly on any upcoming ACA-related weakness). Our risk-adjusted relative value model is influenced by the 10-15% appreciation of mid-cap stocks since our last price target change. Accordingly, our model now yields a 2015 target P/E of 16x applied to our 2015 EPS-ex-HCIT estimate of $5.63 (15.7x GAAP EPS including HCIT of $5.83).”

Universal Health Services closed on Wednesday at $79.79.