Analyst Kevin Fischbeck from Bank of America Securities reiterated a Sell rating on Ardent Health Partners, Inc. and decreased the price target to $10.00 from $12.00.
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Kevin Fischbeck has given his Sell rating due to a combination of factors impacting Ardent Health Partners, Inc. The company’s third-quarter results were slightly below expectations, with adjusted EBITDA falling 2% short of consensus estimates. A significant reduction in guidance for the second half of the year was announced, with a $55 million decrease in adjusted EBITDA midpoint and a 50% cut in EPS, primarily due to rising professional fees and an increase in payor denials.
These pressures are expected to persist into the fourth quarter, suggesting further underperformance. Despite some positive volume growth, the overall financial outlook remains challenging, leading to a reduction in the price objective from $12 to $10. The valuation adjustments reflect these difficulties, and as a result, Fischbeck reiterates an Underperform rating for the stock.