HCA Holdings (HCA) PT Lowered to $88 at Jefferies; Reiterates Buy
Jefferies lowered its price target on HCA Holdings (NYSE: HCA) to $88.00 (from $90.00) while maintaining a Buy rating. Jefferies expects continued M&A activity that will enable management to achieve their LT EBITDA growth target of +4-6%. That said, analyst Brian Tanquilut believes HCA's FY18 organic growth will look more like this year.
Management noted that they expect the divestiture of their Oklahoma operations to close at year-end, while two acquisitions will also likely be completed in Q4. Jefferies estimates these 3 transactions will reduce 2018 EBITDA by $80MM.