HCA Healthcare stock rating reiterated at Overweight by Cantor Fitzgerald

Published 02/07/2025, 12:34
HCA Healthcare stock rating reiterated at Overweight by Cantor Fitzgerald

Investing.com - Cantor Fitzgerald has maintained its Overweight rating on HCA Healthcare Inc (NYSE:HCA) with a price target of $444.00. The healthcare giant, currently trading near its 52-week high of $417.14, has demonstrated robust financial health with an "GREAT" rating according to InvestingPro analysis.

The firm cited potential upside from Tennessee’s Directed Payment Program (DPP) and hurricane recovery efforts as factors that outweigh concerns about consensus expectations for volume growth. This outlook aligns with HCA’s strong operational performance, evidenced by its impressive $71.58 billion in revenue and $14.22 billion in EBITDA over the last twelve months.

Cantor Fitzgerald noted that while market consensus anticipates increased blended inpatient and outpatient volumes, recent survey results have indicated some softening in these metrics.

Despite these volume concerns, the research firm sees significant revenue potential from Tennessee’s Directed Payment Program, estimating it could add between 94 and 235 basis points to HCA’s inpatient revenue per admission.

The firm’s maintained Overweight rating suggests continued confidence in HCA Healthcare’s performance outlook, with the specified catalysts potentially offsetting any volume weakness in the near term.

In other recent news, HCA Healthcare has seen significant developments. RBC Capital raised its price target for HCA Healthcare to $404, maintaining an Outperform rating after discussions with the company’s management, which highlighted HCA’s resilience amid changing healthcare policies. Cantor Fitzgerald also maintained its positive outlook, reiterating a $444 price target and an Overweight rating, citing the company’s strategic positioning and its collaboration with Galen College of Nursing to address staffing needs. The firm noted that while proposed changes to provider tax regulations might seem concerning, the actual impact on HCA could be less severe than anticipated due to the gradual implementation of the new tax cap. Additionally, Cantor Fitzgerald recently lifted its price target to $444 from $405, emphasizing HCA’s strong positioning and strategic advantages, which bolster confidence in its future financial guidance. Analyst Sarah James pointed out HCA’s resilience in the face of natural disasters and its plans to expand care sites, which are expected to drive volume growth. This expansion strategy aims to enhance access to services, potentially leading to sustained growth and reinforcing HCA’s market leadership. These developments underscore HCA Healthcare’s ongoing efforts to adapt to industry changes and optimize its operational strategies.

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