Ardent Health Partners, Inc. (ARDT – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Joanna Gajuk from Bank of America Securities reiterated a Hold rating on the stock and has a $17.00 price target.
Joanna Gajuk’s rating is based on a combination of factors that highlight both potential opportunities and risks for Ardent Health Partners, Inc. The company anticipates approval for the New Mexico state-directed payment program in 2025, which could enhance its operating cash flows significantly. Additionally, potential policy changes may open up more acquisition opportunities, aligning with ARDT’s strategy to expand through joint ventures with leading hospital systems.
However, there are notable risks that justify the Hold rating. The uncertainty surrounding Medicaid supplemental payments and subsidies could impact future earnings. Moreover, while nurse costs have stabilized, professional fees, particularly in radiology, continue to rise, posing a financial challenge. Despite these concerns, commercial rates are growing, and the company is managing denials effectively, but the overall risk profile suggests a cautious approach, hence the Hold rating.