Ardent Health Partners, Inc., the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Craig Hettenbach from Morgan Stanley downgraded the rating on the stock to a Hold and gave it a $12.00 price target.
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Craig Hettenbach has given his Hold rating due to a combination of factors, including a downgrade to Equal-weight and a reduction in the price target from $22 to $12. This decision stems from Ardent Health Partners, Inc.’s recent guidance cuts for 2025, which highlight its disadvantages compared to larger peers who are showing stronger execution and earnings power. The updated guidance for 2025 EBITDA-NCI is significantly lower than initial estimates, contrasting with peers who have seen positive revisions.
Furthermore, Hettenbach notes that Ardent’s operating margins are considerably lower than those of its competitors, which are trading at higher valuation multiples. Despite efforts to mitigate headwinds through cost-saving programs, there is no clear near-term catalyst to drive a re-rating of the stock. The company’s operational performance may take several quarters to stabilize, leading to a cautious stance on the stock’s potential upside.