Market Overview

UPDATE: Imperial Capital Upgrades Tenet Healthcare to Outperform on Multi-Year Visibility

Share:
Related THC
CNBC's Stock Pops & Drops From March 23
PE Firm Sets Ventures With Select Medical, Tenet Healthcare
Medicare Pay Plan Elevates Outpatient And Home Health (Investor's Business Daily)

Imperial Capital raised its rating on Tenet Healthcare (NYSE: THC) from In-Line to Outperform and raised its price target from $20 to $40.

Imperial Capital commented, "In our view, several key electoral victories broke in Tenet's favor (Presidential, Senate, California Proposition 30), guidance for 2013 EBITDA is achievable, and significantly improved multi-year visibility warrants a higher target multiple (increased to 6.5x from an historical low of 5.0x, more consistent with the industry level). We believe that Tenet has crossed a bridge to greater multi-year visibility on its operations by demonstrating the earnings benefits of its operational programs (MPI, outpatient acquisitions, Conifer, etc.), thwarting a hostile bid for the company during a transition phase, and soon benefitting from a multi-year tailwind for the industry. Additionally, we believe that the company may be taking a more conservative stance on earnings guidance."

Tenet Healthcare closed at $33.39 on Wednesday.

Latest Ratings for THC

DateFirmActionFromTo
Mar 2015SunTrust Robinson HumphreyMaintainsNeutral
Mar 2015BMO CapitalDowngradesOutperformMarket Perform
Feb 2015CitigroupMaintainsBuy

View More Analyst Ratings for THC
View the Latest Analyst Ratings

Posted-In: imperial capitalAnalyst Color Upgrades Intraday Update Analyst Ratings

 

Related Articles (THC)

Around the Web, We're Loving...

Get Benzinga's Newsletters