Community Health Systems (CYH) Stock Getting a Boost After Wells Fargo Upgrade

NEW YORK (TheStreet) -- Shares of Community Health Systems  (CYH) were getting a boost, up 1.51% to $63.39 in mid-morning trading Friday, after analysts at Wells Fargo upgraded the company to "outperform" from "market perform" this morning.

The firm cited improved long-term visibility into financial results following yesterday's Supreme Court decision.

The stock, along with other health care company stocks, jumped on the Supreme Court ruling that the federal government can continue issuing subsidies to Americans through the Affordable Care Act, also known as "Obamacare."

Eligible American in the 34 states with federal marketplaces, as well as those living in states with their own exchanges, will continue to get federal tax credits.

Wells Fargo analysts expect hospitals to close some of the EBITDA multiple gap, driving multiple expansion.

"Our forecast for multiple expansion reflects the improved longterm visibility into financial results due to a continuing rise in the number of individuals with health insurance in the United States that began on Janurary 1, 2014," the firm wrote in a note this morning.

Franklin, Tenn.-based Community Health Systems is a hospital company and an operator of acute care hospitals in communities.

The company provides healthcare services through the hospitals that it owns and operates in non-urban and selected urban markets.

CYH ChartCYH data by YCharts

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