Ardent Health Partners, Inc. (ARDT) has received a new Buy rating, initiated by UBS analyst, A.J. Rice.
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A.J. Rice has given his Buy rating due to a combination of factors that highlight the potential for growth and an attractive valuation for Ardent Health Partners, Inc. The company owns a robust portfolio of acute care hospitals, with significant opportunities to expand its core commercial and Medicare business lines, which constitute a substantial portion of its revenue. Despite a recent sell-off driven by Medicaid payment reductions, the stock is trading at a discount compared to its peers, presenting an appealing entry point for investors.
Furthermore, the recent passage of a reconciliation bill has alleviated some policy uncertainties, providing a clearer outlook for Ardent’s future earnings. The approval of the New Mexico directed payment program further strengthens the company’s medium-term earnings prospects. A.J. Rice also anticipates that operational efficiencies and investments in higher-margin outpatient assets will drive margin improvements, making Ardent Health Partners a compelling investment opportunity with a projected price target of $17.
In another report released on September 5, RBC Capital also maintained a Buy rating on the stock with a $21.00 price target.