HCA: Baxter Maintains Hold as Soft Underlying Trends Prompt Trimmed EBITDA Outlook and Price Target Cut to $436

In a report released yesterday, Stephen Baxter from Wells Fargo maintained a Hold rating on HCA Healthcare, with a price target of $436.00.

Stephen Baxter has given his Hold rating due to a combination of factors tied to HCA’s recent performance and outlook. The company’s first quarter was affected by unusual weather and flu patterns, while temporary benefits from Medicaid payments and the resiliency program masked softer underlying trends and volumes that were at the low end of management’s target range.

He also sees limited visibility on utilization and payer mix, with weak core payer mix after adjusting for exchange membership shifts and exchange volumes declining in line with expectations but still early in the year. As a result, Baxter trimmed his EBITDA forecasts, cut his price target to $436, and views the roughly 8% core growth needed to hit guidance as demanding, leading him to maintain a neutral, Hold stance rather than move to a more positive or negative rating.

According to TipRanks, Baxter is an analyst with an average return of -0.1% and a 45.95% success rate. Baxter covers the Healthcare sector, focusing on stocks such as McKesson, Elevance Health, and Humana.