Tenet Healthcare (THC) PT Raised to $160 at Deutsche Bank
Deutsche Bank analyst Pito Chickering raised the price target on Tenet Healthcare (NYSE: THC) to $160.00 (from $155.00) while maintaining a Buy rating.
The analyst comments "Updated 2024 guidance of $3.9b EBITDA for 2024 and $3.975b at the high end is within spitting distance of consensus estimates for 2026 of $4.09b, showing how quickly THC continues to transform its business. With leverage of 3.3x all of a sudden THC becomes investible to a whole new set of investors as we compare its leverage ratio to HCA around 3x. While THC is up ~94% YTD and that often makes new investors pause and wait for a pullback, we note that it's trading at 7.5x 2025 estimates and is a 1.7x cheaper than HCA today, and hence despite the run-up its still significantly cheaper. It will take years until THC can achieve a multiple similar to HCA due to HCA’s long track record and weighting within the S&P, but overtime its EBITDA growth should be greater due to capital allocation into ASCs."