Leerink Partners analyst Whit Mayo reiterated a Buy rating on Universal Health (UHS – Research Report) on June 17 and set a price target of $253.00.
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Whit Mayo has given his Buy rating due to a combination of factors, including the anticipation of a softer economic landing and the valuation of Universal Health’s stock being appealingly low, trading at less than 10 times earnings per share. Despite the expectation of higher start-up costs in the second quarter of 2025 due to the opening of Cedar Hill Hospital, Mayo sees these costs improving in the latter half of the year, with other facilities like West Henderson already generating positive EBITDA to offset these losses.
Furthermore, Mayo has adjusted his full-year forecasts slightly upward to reflect lower start-up losses in the second half of 2025, indicating confidence in the company’s overall performance. While the second quarter might face some seasonal pressures, particularly in the behavioral health segment, the overall outlook remains positive with expectations of modestly positive non-same-store EBITDA for the year. The price target has been slightly increased, reflecting a positive long-term growth outlook.
In another report released yesterday, UBS also reiterated a Buy rating on the stock with a $280.00 price target.
Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of UHS in relation to earlier this year.