UPDATE: Deutsche Bank Raises PT on Tenet Healthcare Corp. on Continued Good Outlook
In a report published Friday, Deutsche Bank reiterated its Buy rating on Tenet Healthcare Corp. (NYSE: THC), and raised its price target from $43.00 to $46.00.
Deutsche Bank noted, “We continue to believe an upside risk to THC's valuation is its Conifer segment, which is growing at a faster pace than the overall enterprise and could begin to differentiate THC's multiple once Conifer's stand-alone (non-THC) EBITDA is convincing enough to the market. Finally, we note that our valuation framework does not include THC's NOL, which provides an additional $3-4 of cushion to the valuation. Key risks include: Medicare/Medicaid cuts, implementation risks of PPACA, HCIT conversions, M&A integration, state exposures in Texas, Florida and California.”
Tenet Healthcare Corp. closed on Thursday at $41.76.
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