Tenet Healthcare (THC) PT Raised to $246 at Goldman Sachs

Goldman Sachs analyst Scott Fidel raised the price target on Tenet Healthcare (NYSE: THC) to $246.00 (from $224.00) while maintaining a Buy rating.

The analyst comments "THC underperformed (-5.34% versus the S&P ~flat) on 10/28 despite reporting 3Q EBITDA that beat consensus by 6.2% and raising 2025 EBITDA and revenue guidance by $50 million and $150 million, respectively. THC executed on the key inputs into our Buy thesis including sustainable outsized revenue and EBITDA growth in the USPI ASC business and a more focused strategy for the Hospital segment centered on sustained improvement in margins and returns. Our positive investment thesis also reflects our confidence in THC driving stronger returns on capex as the company raised its 2025 capex guidance by $150 million at the midpoint. Moreover, THC is showing real progress in advancing FCF conversion, raising FCF-NCI full year outlook by $250 million. Relative to the 3Q results, top-line growth was driven by strong pricing in ASC revenue per case and Hospital revenue per adj. admission reflecting the strategic focus on higher acuity patients and optimizing payor mix. We also suspect that part of the stock underperformance could relate to the company's exposure to Medicaid supplemental payments and HIX volumes which both face policy uncertainty heading into 2026 and beyond. We are raising our 2025-2028 revenue and adjusted EBITDA estimates leading to a price target of $246 (up from $224, previously) on an unchanged target valuation multiple."

You May Also Be Interested In

• Berenberg Upgrades Accelleron Industries AG (ACLN:SW) to Buy
• JPMorgan Upgrades Amber Enterprises India Ltd (AMBER:IN) to Overweight
• Stripe, Advent In Talks To Buy Paypal - WSJ