HCA Holdings (HCA) PT Raised to $181 at UBS; 'See Inflection Coming Again'

UBS analyst Whit Mayo raised the price target on HCA Holdings (NYSE: HCA) to $181.00 (from $172.00) while maintaining a Buy rating.

The analyst commented, "We sense a two-fold inflection on the way. First, we think HCA is poised to surprise on the upside with an acceleration of its capital spending plans reinforced by heightened conviction around its cash flow position, out-year growth opptys and continuously refined processes around capital allocation. Second, few investors appreciate the Medicare pricing tailwind which we peg adding 50% to HCA's annual 4-6% EBITDA growth in 2020 alone ($230m+). Moreover, we see HCA meaningfully taking advantage of its historically low leverage to turn more aggressive on buybacks at unprecedented levels. We see at least a $1/sh (+8%) of EPS upside in 2020."

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