Analyst Craig Hettenbach of Morgan Stanley maintained a Hold rating on Universal Health (UHS – Research Report), retaining the price target of $200.00.
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Craig Hettenbach has given his Hold rating due to a combination of factors that suggest a balanced outlook for Universal Health Services. The company is experiencing solid utilization trends in its acute business, with growth in the behavioral segment leaning more towards pricing adjustments. Despite the stock’s significant underperformance compared to its peers, there is potential for a catch-up trade, especially if volume trends in behavioral health and policy outcomes remain favorable.
Moreover, during a discussion with the CFO, it was highlighted that UHS is trading near the lower end of its valuation range, which could present a more attractive risk/reward scenario. Although the stock’s valuation and recent performance might suggest potential upside, the overall market conditions and company-specific factors warrant a cautious approach, justifying the Hold rating.
According to TipRanks, Hettenbach is a 4-star analyst with an average return of 4.1% and a 54.69% success rate.
In another report released on May 28, Cantor Fitzgerald also reiterated a Hold rating on the stock with a $227.00 price target.
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