J.P. Morgan analyst Benjamin Rossi has maintained their neutral stance on HCA stock, giving a Hold rating today.
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Benjamin Rossi has given his Hold rating due to a combination of factors that influence HCA Healthcare’s financial outlook. Despite HCA’s strong third-quarter performance and an increase in adjusted EBITDA guidance for 2025, there are uncertainties regarding the impact of future policy changes, particularly concerning the expiration of the eAPTCs. Management has provided some reassurance with their resiliency program, which aims to offset potential policy-related headwinds through cost management and operational efficiencies.
However, there are concerns about the sustainability of current volume growth trends, especially with the potential decline in ACA marketplace enrollment. Additionally, while HCA has shown the ability to manage expenses and leverage favorable payer mix trends, the ongoing challenges with professional fees and the uncertainty surrounding pending MSPP decisions in key states like Florida, California, Georgia, and Virginia contribute to the cautious outlook. These factors collectively justify a Hold rating, as they present both opportunities and risks that could affect HCA’s future performance.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $425.00 price target.