NEW YORK (TheStreet) -- RATINGS CHANGES
AMC Entertainment (AMC - Get Report) was started at buy by Benchmark, which set a $34.81 price target, saying AMC's shares offer investors a pure play on the domestic cinema industry, an industry often considered defensive to economic downturns and competitive entertainment solutions, while potentially benefiting from the relative perceptual strength of the on-going U.S. economy.
Energizer Holdings (ENR - Get Report) was started at sector weight by Keybanc, which didn't set a price target. Management is focused on maximizing free cash flow as benefiting shareholders long-term through reinvestment, dividends and repurchases; however, with category declines still in place and incremental long term investments necessary, an emphasis on additional cost cutting despite an already large effort is necessary to deliver low single-digit Ebitda (earnings before interest, taxes, depreciation and amortization) growth, Kebanc said. The industry is set to drastically change and Energizer's transition obscures the near term, Keybanc added.
HealthSouth (HLS) was upgraded to outperform by market perform by JMP Securities, which set a $54 price target, saying the company can post accelerated sales and bottom-line growth.
PRA Health Services (PRAH) was started at sector weight by Keybanc, which cited valuation with the stock having doubled since its successful late 2014 IPO and now trading at premium multiple of 12.5x our 2016 EBITDA estimate (peer group: 11.7x). Also, elevated balance sheet debt (~4.7x EBITDA) will relatively limit the company's strategic flexibility, Keybanc said, and a refinancing might help improve PRA's investment profile given the low interest rate environment and elevated equity valuations.