Ryan Langston, an analyst from TD Cowen, maintained the Buy rating on Universal Health. The associated price target was raised to $251.00.
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Ryan Langston has given his Buy rating due to a combination of factors including Universal Health’s strong performance in both its Acute and Behavioral segments. The company has demonstrated solid growth with same-store net revenues increasing significantly year-over-year, and management anticipates further volume growth in the near term. Additionally, the opening of new hospitals and the expansion of the SDP programs in key states like Nevada and Florida are expected to contribute positively to the company’s EBITDA.
Langston also highlights the company’s strategic focus on diversifying its payer mix and expanding its outpatient strategy, which includes operating numerous access points and launching new initiatives. Despite some challenges such as labor market tightness, Universal Health is making steady improvements in hiring trends. The company’s financial strategy, including maintaining a low net leverage position and focusing on share repurchases and organic capital investments, further supports the positive outlook, leading to a price target of $251.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $243.00 price target.