Bank of America Securities analyst Kevin Fischbeck reiterated a Sell rating on Universal Health today and set a price target of $215.00.
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Kevin Fischbeck has given his Sell rating due to a combination of factors, even though Universal Health’s first-quarter results exceeded earnings and revenue expectations on the back of stronger pricing and disciplined cost control. He notes that acute care volumes were flat for the second consecutive quarter, and that the company’s core operating trends remain lackluster despite the quarter’s upside.
Fischbeck also emphasizes that Universal Health has above-average exposure to upcoming policy changes, which he believes could pressure future performance and justify a more cautious stance. While he maintains a price objective of $215, reflecting modest multiple compression on EBITDA given flat acute volumes and softer-than-expected behavioral volumes, he sees the risk/reward as unfavorable and therefore reiterates his Underperform (Sell) recommendation.
Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of UHS in relation to earlier this year.