Analyst Craig Hettenbach of Morgan Stanley maintained a Hold rating on Universal Health, retaining the price target of $200.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Craig Hettenbach has given his Hold rating due to a combination of factors that reflect both positive and cautious elements in Universal Health’s recent performance. Despite the company exceeding expectations in its Q2 results with a revenue increase of 9.6% year-over-year and an adjusted EBITDA that surpassed Street estimates, the stock has underperformed compared to its peers and the broader market, being down 14% year-to-date.
Moreover, while Universal Health has raised its 2025 guidance for EBITDA and EPS, indicating confidence in its current operating trends and supplemental payment approvals, there remain concerns about the company’s ability to navigate expected headwinds from the OBBB in the coming years. Additionally, the growth in same-facility admissions for both acute and behavioral health segments lagged behind Street expectations, which may temper enthusiasm for immediate upside potential. These mixed signals contribute to the Hold rating, suggesting a wait-and-see approach as the company addresses these challenges.
In another report released on July 14, RBC Capital also maintained a Hold rating on the stock with a $201.00 price target.
Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of UHS in relation to earlier this year.