UPDATE: Deutsche Bank Upgrades Tenet Healthcare to Buy on Compelling Outlook

Deutsche Bank raised its rating on Tenet Healthcare

from Hold to Buy and increased its price target from $31 to $38. Deutsche Bank noted, "Our upgrade is underpinned by: (1) clear signs of improving business mix and margins due especially to gains in outpatient, (2) tangible momentum in Conifer, and (3) a more sustainable FCF profile going forward. We also continue to highlight the upside risks due to PPACA, and note our 2014 EPS of $3.85 is 17% above consensus. Due to a more favorable outlook, we believe THC should be positioned to garner an in-line (~6x) fwd EV/EBITDA multiple." Tenet Healthcare closed at $30.63 on Thursday.