Raymond James analyst John Ransom has maintained their bullish stance on THC stock, giving a Buy rating today.
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John Ransom has given his Buy rating due to a combination of factors including Tenet Healthcare’s strong quarterly performance and improved financial outlook. The company reported adjusted EBITDA figures that surpassed expectations, indicating robust operational efficiency. Additionally, management’s decision to raise the 2025 adjusted EBITDA guidance by $50 million and the free cash flow guidance by $250 million further underscores the company’s positive trajectory.
Despite a minor dip in stock price attributed to profit-taking, the overall financial health of Tenet Healthcare remains strong, with increasing ASC volumes and a return to positive growth in hospital-based surgeries. The company’s valuation appears attractive, trading at a multiple lower than its peers, which suggests potential for stock appreciation. The strategic focus on free cash flow generation and debt reduction also supports a favorable long-term outlook.