Tenet Healthcare price target raised to $200 from $185 at Raymond James

Published 23/07/2025, 12:00
Tenet Healthcare price target raised to $200 from $185 at Raymond James

Investing.com - Raymond (NSE:RYMD) James raised its price target on Tenet Healthcare (NYSE:THC) to $200 from $185 while maintaining an Outperform rating following the company’s second-quarter 2025 results that exceeded expectations. According to InvestingPro data, Tenet maintains a "GREAT" financial health score of 3.19, with the stock currently trading at an attractive EV/EBITDA multiple of 6.3x despite its strong market position in the Healthcare Providers sector.

Tenet Healthcare reported adjusted EBITDA excluding non-controlling interests of $887 million, surpassing Raymond James’ estimate of $758 million. The company’s Hospital segment delivered adjusted EBITDA excluding non-controlling interests of $584 million (versus the $474 million estimate), while the ASC segment reported $303 million (versus the $284 million estimate). The company’s strong performance contributes to its trailing twelve-month EBITDA of $4.2 billion, demonstrating robust operational efficiency.

Management raised its 2025 adjusted EBITDA guidance by $365 million to a range of $3,460-3,505 million. This updated guidance implies second-half pre-NCI EBITDA of $2,186 million compared to Street expectations of $2,010 million.

Despite these positive results, Tenet’s stock fell approximately 10%, which Raymond James attributed to investor concerns about volume softness. Hospital adjusted admissions increased only 0.4% (versus the 2.5% estimate), prompting management to lower its full-year adjusted admissions guidance by 50 basis points to 1.5-2.5%. ASC volumes were also muted at -0.6% (versus the 0.5% estimate). InvestingPro analysis reveals 8 additional key insights about Tenet’s market position and future prospects, available exclusively to subscribers.

Raymond James noted that some investors may be pricing in potential fallout within the ACA market following recent news from Oscar Health, Elevance Health, Centene (NYSE:CNC), and Molina Healthcare (NYSE:MOH), with implications for 2026 earnings. The firm is factoring in a $90 million ACA headwind for 2026, assuming ACA revenue declines 20% at a 30% contribution margin. For a comprehensive analysis of Tenet’s market position and future prospects, including detailed valuation metrics and peer comparison, access the full Pro Research Report on InvestingPro.

In other recent news, Tenet Healthcare Corporation reported better-than-expected financial results for the second quarter of 2025. The company achieved an earnings per share (EPS) of $4.02, significantly surpassing the projected $2.88, marking a 39.58% increase over expectations. Additionally, Tenet Healthcare reported revenue of $5.27 billion, exceeding the anticipated $5.16 billion. These results highlight the company’s robust financial performance during the period. While stock price movement is not the focus, the earnings beat was notable. There were no reports of mergers or acquisitions in this update. Analyst upgrades or downgrades were also not mentioned in the recent developments. These updates reflect Tenet Healthcare’s current business standing.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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