Deutsche Bank Upgrades Tenet Healthcare (THC) to Buy

Deutsche Bank upgraded Tenet Healthcare (NYSE: THC) from Hold to Buy with a price target of $38.00 (from $31.00).

The firm comments, "However, in taking a fresh look at THC, we conclude that its outlook has become more compelling. Our upgrade is underpinned by: (1) clear signs of improving business mix and margins due especially to gains in outpatient, (2) tangible momentum in Conifer, and (3) a more sustainable FCF profile going forward. We also continue to highlight the upside risks due to PPACA, and note our 2014 EPS of $3.85 is 17% above consensus. Due to a more favorable outlook, we believe THC should be positioned to garner an in-line (~6x) fwd EV/EBITDA multiple, putting our PT at $38 (up from $31)."

For an analyst ratings summary and ratings history on Tenet Healthcare click here. For more ratings news on Tenet Healthcare click here.

Shares of Tenet Healthcare closed at $30.63 yesterday.

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