NEW YORK (TheStreet) -- Shares of HealthSouth (HLS) closed lower by 4.75% to $37.68 on heavy trading volume on Friday after the post-acute healthcare services provider's stock rating was lowered to "underweight" from "equal weight" at Barclays.
The firm downgraded the stock and lowered its price target to $42 from $45 in an attempt to balance out its ratings distribution among healthcare facility companies covered by Barclays analysts.
"We believe that HealthSouth simply represents less return relative to its risk profile within our coverage universe," Barclays analysts wrote in an note released before today's market open.
Other reasons for the downgrade include limited multiple expansion, concerns over certain payments in the Medicare program and weak organic growth.
Birmingham, AL-based HealthSouth is a well-run company in its sector and "the management team's ability to outperform its assets and sector" remains a risk to the "underweight" rating, analysts added.
By the end of the trading day, 1.14 million shares of HealthSouth had been traded, compared with its average daily volume of 619,869 shares.
Separately, HealthSouth has a "buy" rating and a letter grade of B at TheStreet Ratings because of the company's robust revenue growth, increase in net income, good cash flow from operations, growth in earnings per share and notable return on equity.
You can view the full analysis from the report here: HLS
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 article's author.