As previously reported, BofA/Merrill upgraded Amedisys to Buy from Neutral and raised its price target to $97 from $88. Analyst Joanna Gajuk said last night's CMS proposal increased reimbursement visibility for the home health industry calling for a +2.1% rate update in 2019, the best update since 2007 following nine consecutive years of cuts. Additionally, the analyst said the proposed changes for 2020 appear manageable and provide clarity for the industry for-profits. Gajuk believes Amedisys is well positioned for the changes as its low leverage provides upside from capital deployment and has ample capacity to pursue acquisitions.