Leerink Partners analyst Whit Mayo has reiterated their bullish stance on UHS stock, giving a Buy rating yesterday.
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Whit Mayo has given his Buy rating due to a combination of factors that highlight Universal Health’s financial performance and future prospects. The company’s second-quarter results showed a slight beat in revenue and adjusted EBITDA compared to expectations, indicating solid operational performance. The acute care segment performed largely in line with expectations, with revenue slightly surpassing estimates and showing strong same-store metrics.
Additionally, the behavioral segment demonstrated strong revenue growth, bolstered by the recognition of the Tennessee Directed Payment Program (TN DPP), which was not initially included in forecasts. Despite some shortfalls in normalized EBITDA, the overall financial health and the upward revision of the 2025 guidance by $80 million at the midpoint reflect confidence in the company’s future earnings potential. These factors collectively support the Buy rating, suggesting that Universal Health is well-positioned for growth.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $227.00 price target.
Based on the recent corporate insider activity of 44 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.