UPDATE: Deutsche Bank Upgrades Tenet Healthcare to Buy Following Recent Management Meetings

In a report published Thursday, Deutsche Bank analyst Darren Lehrich upgraded the rating on

from Hold to Buy, and raised the price target from $49.00 to $55.00. In the report, Deutsche Bank noted, “We are re-adding THC to our hospital Buy list. At current levels, the risk/reward for THC shares seems very good in light of: (1) recent share price consolidation in the mid-$40's; (2) THC's relative growth profile due to PPACA readiness, cost savings, improving FCF, accretive capital deployment (M&A and buybacks); and (3) enhanced earnings visibility for Conifer over the next 12-24 months. We bump 2014 EPS to $4.35 ($4.03), mainly to reflect recent refi and slightly higher margin. Our $55 PT equates to fwd EV/EBITDA of 7x, up 0.5x to reflect a higher blended multiple as we now contemplate SOTP for Conifer.” Tenet Healthcare Corp. closed on Wednesday at $44.37.