HCA Holdings (HCA) PT Raised to $173 at Credit Suisse, Remains Top Pick Among Providers

Credit Suisse analyst A.J. Rice raised the price target on HCA Holdings (NYSE: HCA) to $173.00 (from $169.00) while maintaining a Outperform rating.

The analyst comments "HCA ended the year with net debt / EBITDA of 3.4x, below the company’s 3.5-4.5x target range and the lowest it has been since the company was brought public again in 2011. We expect the company to generate about $3.7 bln of FCF in 2020. After NCI distributions and the dividend, remaining FCF should be more than $2.4 bln. This leaves plenty of capacity for the company to accelerate share repurchases, which totaled $1.0 bln in 2019, and pursue large acquisitions. HCA increased its share repurchase authorization by $2 bln to a total of $3.2 bln. Management said that they are continuing to look at a couple of larger deals, but whether they will come to fruition and timing are still unknown."

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