Jefferies analyst Brian Tanquilut reiterated a Buy rating on Tenet Healthcare (THC – Research Report) on March 21 and set a price target of $185.00.
Brian Tanquilut has given his Buy rating due to a combination of factors that highlight Tenet Healthcare’s strong fundamentals and potential for valuation growth. Despite the political and regulatory uncertainties surrounding the healthcare sector, Tanquilut believes that Tenet’s current stock valuation is significantly discounted compared to its fair value. This is true even when considering the worst-case scenarios for political and regulatory changes.
Furthermore, Tenet Healthcare has demonstrated effective management of expenses, including labor costs, which supports its robust financial health. The company’s focus on free cash flow generation and strategic share buybacks is seen as a positive move to enhance shareholder value. Tanquilut anticipates that once regulatory clarity is achieved, Tenet’s valuation will align more closely with its growth prospects, particularly in its USPI segment, offering substantial upside potential for investors.
Based on the recent corporate insider activity of 36 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 THC in relation to earlier this year.