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Investing.com - Cantor Fitzgerald raised its price target on Tenet Healthcare (NYSE:THC) to $190.00 from $177.00 on Wednesday, while maintaining an Overweight rating on the healthcare provider’s stock. The stock, which has fallen about 10% in the past week according to InvestingPro data, currently trades at an attractive 11.2x earnings with a substantial 10% free cash flow yield.
The price target increase comes despite Cantor Fitzgerald noting that the company’s recent conference call "lacked some encouragement" for investors looking for signals of strength into 2026.
According to the research firm, Tenet’s guidance implies improvement in several areas, including hospital margins, resolution of volume pressure, better tax situation, and share count adjustments.
Cantor Fitzgerald observed that commentary on future years was limited, which was expected at this point in the calendar year.
The firm believes investors are seeking clearer catalysts as the stock faces potential pressures from enhanced subsidies expiring on December 31, 2025, and upcoming OBBB changes in 2027/2028.
In other recent news, Tenet Healthcare reported impressive second-quarter 2025 results, significantly surpassing earnings and revenue forecasts. The company posted an earnings per share (EPS) of $4.02, exceeding the expected $2.88 by a notable margin. Revenue also outperformed projections, reaching $5.27 billion compared to the anticipated $5.16 billion. Following these strong results, several analyst firms have adjusted their outlook on Tenet Healthcare. BofA Securities raised its price target to $205 from $195, maintaining a Buy rating due to the company’s better-than-expected performance. UBS also increased its price target to $238 from $230, highlighting a $79 million favorable impact from supplemental payments. Raymond (NSE:RYMD) James set a new price target of $200, up from $185, following Tenet’s strong adjusted EBITDA results. These developments reflect a positive sentiment among analysts regarding Tenet Healthcare’s recent performance.
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