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

Imperial Capital raised its rating on Tenet Healthcare
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.


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