Morgan Stanley analyst Craig Hettenbach has maintained their bullish stance on THC stock, giving a Buy rating yesterday.
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Craig Hettenbach has given his Buy rating due to a combination of factors that highlight Tenet Healthcare’s strategic focus and financial performance. The company is emphasizing higher acuity care in both ambulatory surgical centers and hospital settings, which is contributing to revenue growth. This strategic focus, along with operational discipline, has resulted in strong incremental margins, with a significant portion of revenue growth translating into EBITDA gains.
Despite uncertainties surrounding the future of exchanges, which account for a portion of Tenet’s revenue, Hettenbach views the current valuation as attractive, with a below 7X EV/EBITDA ratio. The company’s management has a clear strategy to expand service lines and leverage technology, such as robotics and AI, to enhance operations and reduce costs. These efforts, combined with increased estimates for future buybacks and a raised price target, support the Buy rating, as Hettenbach sees significant upside potential for the stock.
According to TipRanks, Hettenbach is ranked #3138 out of 9843 analysts.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $192.00 price target.