Deutsche Bank sees ‘relief rally’ in hospital stocks after selloff

Deutsche Bank believes the hospital stocks are positioned for a “relief rally.” The healthcare facility names have been under pressure on concerns around cuts in programs such as Medicaid, the analyst tells investors in a research note. The firm finds the selloff unwarranted, saying “not a single Senator has voiced support for cutting Medicaid benefits,” and that cutting Medicaid benefits would hurt reelection chances going into the 2026 midterms. Increasing clarity on the federal budget in the coming months should reassure investors that the worst-case scenario for Medicaid is unlikely, contends Deutsche Bank. The firm has Buy ratings on HCA Healthcare (HCA), Tenet Healthcare (THC), and Universal Health (UHS).