Market Overview

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

Related THC
Mid-Day Market Update: Keurig Green Mountain Rises On Strong Results; JinkoSolar Shares Decline
Fast Money Picks For November 4
Tracking Larry Robbins' Glenview Capital Management Portfolio - Q3 2015 Update (Seeking Alpha)

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

Oct 2015Mizuho SecuritiesDowngradesBuyNeutral
Oct 2015BarclaysMaintainsOverweight
Sep 2015JP MorganInitiates Coverage onNeutral

View More Analyst Ratings for THC
View the Latest Analyst Ratings

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


Related Articles (THC)

View Comments and Join the Discussion!

Get Benzinga's Newsletters