The Knoxville, TN-based company is a provider of outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers in the U.S.
"The current share price reflects a level of negative near-term sentiment based on perceived integration risk with IPCM, commentary of tougher year over year comps, and a soft flu season in the 2015 fourth quarter and first half of 2016," the firm said in an analyst note.
It will take several quarters of execution to drive shares higher and as a result, Canaccord Genuity maintained its "buy" rating.
The company completed its $1.6 billion acquisition of IPC Healthcare (IPCM), an acute hospitalist and post-acute provider organization, in November.
Shares of TeamHealth closed higher by 2.02% to $41.86 on Tuesday.
Separately, TheStreet Ratings Team has a "buy" rating with a score of B- on the stock.
This is driven by several positive factors, which should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and notable return on equity.
The team feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: TMHTMH data by YCharts