Mizuho Securities reiterated a Buy rating on HCA Holdings (NYSE: HCA), and raised the price target to $102.00 (from $80.00), following the company's 4Q earnings report. Mizuho believes that the Street has it all wrong when it comes to HCA's valuation. 4Q'15 results were better than previewed, driven by all the right things. Volume growth, a return to cost discipline, good pricing and increasing acuity/favorable payer mix. EPS of $5.56 beat Mizuho's $5.22 estimate very nicely.

Analyst Sheryl Skolnick commented, "The Street has HCA all wrong, in our view, at least when it comes to valuation: it insists on ignoring its ability to generate powerful EPS and FCF when it only values HCA on EV/EBITDA. We are determined to change that: it is what sets HCA apart from its peers, enables a $3B share repo without tough cap structure choices and makes HCA a cheap stock. Our new $102PT is a blend of EV, PEG=1.0 and FCF yield at 5%. That's 47% upside: Why would anyone rotate away from that? Buy HCA."

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Shares of HCA Holdings closed at $69.58 yesterday.