UPDATE: Bank of America Raises PO to $6.75 on Tenet Healthcare on Value-Adding Actions
Bank of America reiterated its Neutral rating on Tenet Healthcare (NYSE: THC) and raised its price objective from $6 to $6.75 a share.
Bank of America said, "his morning THC announced a number of items with the goal of enhancing shareholder value including: 1) a reverse 1 for 4 stock split, 2) a $500m share repo authorization, 3) an outlook of $400m in deals, and 4) a new bond offering. We are always a bit skeptical of the shareholder value enhancing aspects of a reverse stock split (especially when the company apparently thinks that its stock was going up anyway), but the commitment to deploy capital is a welcome sight and should provide some support for the shares. This morning we are raising our PO to $6.75 from $6 to reflect the more aggressive plans for capital deployment, although we continue to see more upside elsewhere in hospitals."
Tenet Healthcare closed at $6.27 on Friday.
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