Analyst Joanna Gajuk of Bank of America Securities reiterated a Buy rating on Tenet Healthcare (THC – Research Report), with a price target of $165.00.
Joanna Gajuk has given her Buy rating due to a combination of factors, including Tenet Healthcare’s strong financial performance and strategic positioning. The company exceeded margin expectations and showed impressive growth in hospital volumes, which were higher than anticipated. Although ambulatory volumes faced challenges due to tough comparisons, strong pricing contributed to an EBITDA beat, indicating robust financial health.
Additionally, the guidance for EBITDA was 1% above estimates, suggesting a positive outlook despite some headwinds. Notably, the expected doubling of free cash flow year-over-year after non-controlling interests reflects significant financial improvement. The strategic shift towards the faster-growing Ambulatory Surgery Centers (ASC) business is also a key factor in the positive evaluation, as it positions Tenet Healthcare for future growth. Overall, these elements underpin Joanna Gajuk’s confidence in the company’s prospects, leading to the Buy rating.
Gajuk covers the Healthcare sector, focusing on stocks such as UnitedHealth, Humana, and Chemed. According to TipRanks, Gajuk has an average return of 1.1% and a 54.36% success rate on recommended stocks.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $185.00 price target.