Select Medical price target lowered to $15 from $18 at BofA

BofA lowered the firm’s price target on Select Medical (SEM) to $15 from $18 and keeps a Buy rating on the shares. While hospital fundamentals should remain solid in the second half, the firm is concerned that the policy and reimbursement environment will be more negative compared to recent years, says the analyst, who prefers post-acute over hospitals as the least exposed to the upcoming cuts given this backdrop. The firm is updating estimates and price targets for several companies in its health care facilities coverage.