Community Health stock price target raised to $4.50 from $3.25 at Truist

Investing.com - Truist Securities raised its price target on Community Health (NYSE:CYH), a healthcare provider with $12.65 billion in revenue, to $4.50 from $3.25 on Monday, while maintaining a Hold rating on the stock. According to InvestingPro data, the stock has shown significant volatility with a beta of 1.88.

The price target increase follows Community Health’s better-than-expected third-quarter results, which included top and bottom-line beats, further aided by a one-time legal settlement. While the company maintains a healthy gross margin of 41.84%, InvestingPro analysis shows it hasn’t been profitable over the last twelve months. The company also raised its fiscal year 2025 guidance at the midpoint.

Truist noted that volume trends improved sequentially for Community Health , and labor conditions remain largely stable and favorable despite ongoing pressure around medical specialist fees. The company reaffirmed its full-year cash flow guidance. Get access to 6 more exclusive InvestingPro Tips and a comprehensive Pro Research Report for deeper insights into Community Health’s financial health and market position at InvestingPro.

Community Health announced on Friday a definitive agreement for additional divestitures involving three Pennsylvania hospitals. Truist expects these divestitures to further aid flexibility around debt paydown and capital deployment.

Truist raised its 2025 adjusted EBITDA estimate for Community Health while keeping its 2026 and 2027 estimates unchanged.

In other recent news, Community Health Systems reported its third-quarter 2025 earnings, surpassing revenue expectations with an actual revenue of $3.09 billion, compared to the forecasted $2.99 billion. The company also reported an earnings per share (EPS) of $0.96, significantly exceeding the anticipated EPS of -$0.24. Additionally, Community Health Systems announced a definitive agreement to sell three Pennsylvania hospitals to affiliates of Tenor Health Foundation. The transaction includes the 186-bed Regional Hospital of Scranton, 122-bed Moses Taylor Hospital in Scranton, and 369-bed Wilkes-Barre General Hospital in Wilkes-Barre, along with certain related businesses. These recent developments highlight significant financial performance and strategic moves by Community Health Systems.

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