Credit Suisse's 4 Healthcare Stocks To Avoid

Courtesy of Benzinga.

In a recent report, analysts at Credit Suisse outlined their 2015 outlook for healthcare stocks. Here’s a breakdown of their top stocks to avoid in 2015.
1. United Therapeutics Corp (NASDAQ: UTHR): Analysts expect the company to be under significant earnings pressure from expiring patents and generic competition. In addition, they see increased competition in the pulmonary arterial hypertension segment. Analysts expect that a relatively weak performance from the recently-launched Orenitram will not be a silver bullet for the company. Price target: $120.00
2. ARIAD Pharmaceuticals Inc (NASDAQ: ARIA): Analysts give several factors holding back the company, including relatively flat IMS scripts and the potential for a net price reduction in H2:15. In addition, analysts believe the likelihood that ARIA is acquired by a larger company via a buyout is unlikely. Price target: $6.00
3. Amedisys Inc (NASDAQ: AMED): After significant outperformance in 2014 based partially on buyout speculation and high short interest, analysts believe that the stock will cool in 2015. The stock’s high valuation relative to peers, along with rate pressure and the company’s relatively high leverage all contribute to the risk of owning the stock. Analysts also see limited ability for cost reduction. Price target: $23.00
4. Quality Systems Inc (NASDAQ: QSII): Analysts warn investors to be cautious of the lack of transparency the company provides because it does not issue guidance. Analysts believe a potential slowdown of the electronic health record market would put pressure on the company. Providers’ prefer integrated solutions for both the acute and ambulatory care environment, which does not play into the company’s strengths. Price target: $15.00 

Posted-In: Credit SuisseAnalyst Color Short Ideas Health Care Price Target Analyst Ratings Trading Ideas General