Goldman Sachs initiates HCA Healthcare stock with Buy rating, $470 target

Published 14/10/2025, 10:40
Goldman Sachs initiates HCA Healthcare stock with Buy rating, $470 target

Investing.com - Goldman Sachs has initiated coverage of HCA Healthcare Inc (NYSE:HCA) with a Buy rating and a price target of $470.00. The healthcare giant, currently trading at $410.68, is approaching its 52-week high of $439.01. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value assessment.

The investment bank’s positive outlook stems from confidence in HCA’s demonstrated ability to quickly respond to industry challenges and adjust operations accordingly.

Goldman Sachs highlighted HCA’s consistent performance in maintaining industry-leading adjusted EBITDA margins between 19.5% and 20.0%, despite occasional short-term earnings surprises.

The analyst noted that HCA has benefited from accelerated growth in the ACA Marketplace following enhanced subsidies, along with significant contributions from Medicaid DPP programs.

Goldman Sachs projects HCA will sustain core adjusted EBITDA margins of approximately 20% during 2026-2028, with the company’s new Resiliency cost-saving initiatives expected to largely offset potential pressures from OBBBA.

In other recent news, HCA Healthcare’s financial performance has been a focal point for analysts. Bernstein raised its price target on the company to $417 from $404, following second-quarter results showing an adjusted EBITDA of $3,849 million, surpassing consensus estimates by 4%. Despite this, Bernstein noted a slowdown in patient volumes. Meanwhile, RBC Capital increased its price target to $449 from $404, citing HCA’s industry-leading margins and strong market positioning. Cantor Fitzgerald maintained its Overweight rating and set a price target of $444, highlighting the company’s favorable position within the provider group. The firm also observed an increase in job openings with bonuses across nursing specialties, indicating effective recruitment strategies. Additionally, Bernstein reiterated a Market Perform rating after discussions with HCA’s Chief Transformation Officer about the company’s use of AI and digital technologies. These developments underline the ongoing analyst attention on HCA Healthcare’s strategic and operational initiatives.

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