Universal Health Services (UHS) PT Raised to $223 at Stephens

Stephens analyst Scott Fidel raised the price target on Universal Health Services (NYSE: UHS) to $223.00 (from $210.00) while maintaining a Equal Weight rating.

The analyst commented: "UHS echoed acute peer commentary on the broadly stabilizing labor backdrop, with wage inflation and temporary labor usage having normalized, and a durable demand environment, ultimately paving the way for 2025 adjusted EBITDA-NCI growth of +7.8% at the midpoint of guidance. Additionally, UHS will lap the incremental malpractice expense incurred in 2024. The company's outlook incorporates +5% to +6% Acute top-line growth, evenly split between price/volume, and SS BH revenue growth of +6% to +8%, with growth tilted towards core pricing (i.e., before supplemental payments) than volume. Notably, 2025 guidance does not contemplate anticipated net benefits from the TN/D.C. programs pending CMS approval, allowing for potential upside to EBITDA and the company's forecasted aggregate DPP net benefit of ~$997 million in 2025, which represents a y/y step down from 2024's $1.016 billion, primarily reflective of out-of-period payments received last year. Raise EBITDA estimates, TP to $223 (was $210). Rating: EW."

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