Genesis HealthCare initiated with "buy"

12/03/03 - Legg Mason

NEW YORK, December 3 (New Ratings) – Analysts Doctrow of Legg Mason Wood Walker initiates coverage of Genesis HealthCare Corporation (GHCI) with a "buy" rating. The target price is set to $27.

In a research note published this morning, the analyst mentions that Genesis Health Ventures announced the conversion of its elder care and rehabilitation businesses into Genesis HealthCare Corporation, a publicly traded company, on December 1, 2003. The company is likely to increase its investment on upgrading its facilities in the near future, the analyst says. In terms of liability costs, the company is better positioned than its peers in the US, Legg Mason adds.