Analyst Whit Mayo of Leerink Partners reiterated a Buy rating on Tenet Healthcare (THC – Research Report), with a price target of $185.00.
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Whit Mayo has given his Buy rating due to a combination of factors that highlight Tenet Healthcare’s impressive performance and potential for growth. The company’s fourth-quarter results demonstrated robust fundamental strength, with notable growth in the USPI segment and strong acute volumes, exceeding initial expectations by a significant margin. The stock is currently trading at a valuation that Mayo considers undervalued relative to its future potential, even when accounting for possible regulatory changes that could impact Medicaid.
Moreover, the company’s ability to generate substantial free cash flow over the next few years, alongside the positive impact of share buybacks and a favorable earnings skew, underscores its attractiveness. Tenet’s 2025 guidance suggests a strong upward trajectory, with anticipated EBITDA growth and continued impressive performance from the USPI segment, which benefits from both recent and past mergers and acquisitions. This growth potential, despite modestly lowered EBITDA estimates, supports Mayo’s Buy rating with a price target of $185.
Mayo covers the Healthcare sector, focusing on stocks such as HCA Healthcare, Pediatrix Medical Group, and Acadia Healthcare. According to TipRanks, Mayo has an average return of 4.1% and a 48.24% success rate on recommended stocks.
In another report released yesterday, KeyBanc also maintained a Buy rating on the stock with a $185.00 price target.