Truist Beefs Up Price Target On HCA Healthcare

Truist raised the price target on HCA Healthcare Inc HCA to $310 (implying 16% upside) from $290 and kept a Buy rating as part of a broader research note on Healthcare Services. 

• Analyst David MacDonald is positive on several names in the group thanks to their "sound fundamentals, brisk core demand drivers, a relatively benign regulatory backdrop, and the ongoing move towards value-based care." 
• MacDonald adds that strong free cash flow and financial flexibility across much of the sector should fuel continued strategic M&A, and he sees valuation risk-rewards in the group as "attractive."
• Recently, JPMorgan analyst Lisa Gill downgraded HCA Healthcare to Neutral from Overweight with an unchanged price target of $270 in conjunction with her 2022 outlook. 
• While HCA is well positioned on a long-term basis, other managed care names have more near-term upside, Gill notes.
• The analyst believes HCA is the best-positioned hospital operator in the U.S. but believes other companies she covers offer more significant near-term upside. 
• She expects "modest" EBITDA growth in 2022, reflecting labor pressures and the roll-off of temporary COVID-19-related tailwinds.
• Price Action: HCA shares are up 2.69% at $267.27 during the market session on the last check Wednesday.