Mizuho Securities Cuts Price Target on Tenet Healthcare (THC) to $28; Reiterates Neutral
Mizuho Securities maintained a Neutral rating on Tenet Healthcare (NYSE: THC), and cut the price target to $28.00 (from $33.00), following the company's 2Q earnings report.
Analyst Sheryl Skolnick commented, "The Mama issue is not a 'once and done, now it's behind them' thing. It's a destruction of shareholder value that cannot be reclaimed. It results in higher leverage, lost opportunities to create equity value from share repos or investment in the business (17%+ accretion). Who is accountable? Why are there no announced departures yet? What assurances can shareholders have that this won't happen for a fourth time? Results matter. Protecting shareholder value matters more to us. We lower our PT by the amount of value destroyed, from $33 to $28. Reiterate Neutral."
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Shares of Tenet Healthcare closed at $28.91 yesterday.