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The 2014 All-America Research Team: Health Care Facilities, No. 1: Justin Lake

< The 2014 All-America Research TeamJustin LakeJ.P. MorganFirst-Place Appearances: 2

Total Appearances: 5

Analyst Debut: 2008

Holding on to the No. 1 positions on this roster and in Managed Care, J.P. Morgan’s Justin Lake wins investor praise for his ongoing monitoring of the impacts of 2010’s Patient Protection and Affordable Care Act. As one fund manager says, “Justin does in-depth analysis, which includes the effects of the Affordable Care Act on various facilities, and is helpful with all the changes and challenges to the ACA.” Another admirer reports that the analyst “provided some of the most thoughtful analysis on the Street of the potential benefits of Obamacare.” Lake, 43, expects U.S. health care facilities names to remain solid performers going into 2015, “as the benefits of health care reform are realized over the next several years, coupled with the potential for increased utilization of health care services driven by the improving economy,” he explains. In particular, the researcher maintains his bullishness on two operators of acute care hospitals and outpatient services centers, each of which is a long-standing favorite: King of Prussia, Pennsylvania–based Universal Health Services and Nashville, Tennessee’s HCA Holdings. “Both companies have strong track records of delivering above-average growth in their core businesses,” he says, “while being well positioned to continue deriving benefits from health care coverage expansion.” Sure enough, over the 12 months through mid-September, while the sector delivered a 23.8 percent gain, these shares performed even better. Universal leaped 55.6 percent, to $111.25, and HCA soared to $71.34, climbing 77.1 percent. Lake’s price objectives for the stocks are $118 and $72, respectively.

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