UPDATE: JPMorgan Upgrades Tenet Healthcare (THC) to Neutral

(updating comment)

JPMorgan analyst Gary Taylor upgraded Tenet Healthcare (NYSE: THC) from Underweight to Neutral with a price target of $32.00 (from $31.00).

The analyst comments "THC has undergone a material strategic transformation including the acquisition of Vanguard (2013), the expansion of Conifer, the recent acquisition of USPI, several new non-profit hospital joint ventures, and the planned divestiture of some legacy assets. We believe these moves will serve to improve THC’s consolidated margins and partially insulate THC to some degree from the rate and utilization pressures that other hospitals may face as the U.S. delivery system moves away from a fee-for-service payment model over the coming years. We still believe FCF returns from the “new” THC will be below average. More importantly, barring a surprise Medicaid expansion in FL and/or TX, we do believe the preponderance of positive ACA-related catalysts now lie behind the hospital industry, which limits our outlook for further multiple expansion."

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 $29.25 yesterday.

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