Story updated at 10:05 a.m. to reflect market activity.
Team Health Holding gained 3.6% to $46.64 in morning trading.
The bank set a $54 price target for the company. Analysts A.J. Rice, Brandon Fazio, and Jailendra Singh said the company is a major beneficiary of healthcare reform, with steady core growth.
"Since 2009, TMH has reported a CAGR in net revenue of roughly 13.8% and adjusted EBITDA of 13.7%, even with macro pressures on both volumes and price in recent years," the analysts wrote. "Further, TMH has not reported a decline in same contract revenue growth in its history. This highlights the critical non-discretionary nature of its emergency medical services (71% of total revs), which has insulated the business from the volume and price pressures seen in other healthcare sectors in recent years."
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Separately, TheStreet Ratings team rates TEAM HEALTH HOLDINGS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate TEAM HEALTH HOLDINGS INC (TMH) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow."