Tenet Healthcare initiated with an Overweight at Morgan Stanley

Morgan Stanley initiated coverage of Tenet Healthcare (THC) with an Overweight rating and $165 price target The firm says the company’s “significant” business model and balance sheet transformation has yet to be captured in the stock’s multiple. Risks of government spending cuts likely remain an overhang in the near term, providing entry points for “patient investors in what should emerge as a much cleaner story and durable business,” the analyst tells investors in a research note.