Tenet Healthcare price target raised to $205 from $195 at BofA Securities

Published 23/07/2025, 12:44
Tenet Healthcare price target raised to $205 from $195 at BofA Securities

Investing.com - BofA Securities raised its price target on Tenet Healthcare (NYSE:THC) to $205 from $195 while maintaining a Buy rating on the stock. According to InvestingPro data, the healthcare provider, with a market capitalization of $14.5 billion, has seen its stock decline by 10% over the past week, potentially creating an attractive entry point.

The price target increase follows Tenet Healthcare’s quarterly results, which BofA noted exceeded expectations, prompting the company to raise its guidance.

Despite the guidance increase, BofA believes Tenet’s outlook remains conservative given the strong trends observed in the second quarter.

BofA’s new price target represents 8.4x 2026 estimated adjusted EBITDA, compared to 8.9x previously, reflecting updated estimates that incorporate some but not all of the potential upside.

The firm cited Tenet’s strong free cash flow and increasing business mix toward faster-growing ambulatory surgery centers (ASCs) with higher returns on invested capital as key factors supporting its Buy rating.

In other recent news, Tenet Healthcare reported strong financial results for the second quarter of 2025, significantly surpassing earnings and revenue expectations. The company achieved an earnings per share (EPS) of $4.02, well above the anticipated $2.88, marking a 39.58% increase. Revenue also exceeded forecasts, reaching $5.27 billion compared to the projected $5.16 billion. Following these results, Raymond (NSE:RYMD) James raised its price target for Tenet Healthcare from $185 to $200, maintaining an Outperform rating. The firm’s analysis highlighted the company’s adjusted EBITDA, which amounted to $887 million, surpassing their estimate of $758 million. UBS also adjusted its price target for Tenet Healthcare, increasing it from $230 to $238 while keeping a Buy rating. UBS noted the favorable impact of $79 million from out-of-period supplemental payments related to the Tennessee Directed Payment Program. These developments reflect the company’s robust financial performance and positive outlook from analysts.

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