Amedisys Shares Fall As UBS Downgrades On Value

NEW YORK (AP) — Shares of home health and hospice provider Amedisys Inc. fell Wednesday after a UBS analyst downgraded the stock, citing its valuation.

The stock slid $1.16, or 2.6 percent, to $44.08 in afternoon trading. Shares have ranged between $25.20 and $59.24 over the last 52 weeks.

UBS analyst Donald H. Hooker lowered his rating to "Neutral" from "Buy," citing a 54 percent increase in stock value since the middle of June. He reaffirmed a $46 price target.

"There may be incremental upside to both our estimates and price target in the coming months/quarters to the extent that Amedisys is able to continue to find accretive acquisitions," he wrote in a note to investors.

His primary concern remains the potential for a $9 trillion federal budget deficit, which he said could put more pressure on the government to find savings in the Medicare system. That raises the risk of incremental Medicare reimbursement cuts, which could effect Amedisys' revenue.

The next major catalyst for the stock is health care legislation, he said, which could occur in autumn.

"It is our view that home nursing is relatively politically more exposed to reimbursement cuts than other areas," he wrote. "We expect to get more clarity on the Medicare reimbursement environment incrementally over the next couple of months."