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Investing.com - Universal Health Services (NYSE:UHS), a $11.7 billion healthcare provider with a perfect Piotroski Score of 9 according to InvestingPro, received a reiterated Neutral rating and $227.00 price target from Cantor Fitzgerald on Tuesday. The company appears slightly undervalued based on InvestingPro’s Fair Value analysis.
The research firm highlighted potential risks to healthcare providers if premium increases occur at levels that states are anticipating, which could significantly impact Health Insurance Exchange (HIX) enrollment.
Cantor Fitzgerald noted that HIX enrollment, which doubled in 2025 compared to 2021 levels, could potentially revert to 2021 figures according to Kansas Health Institute forecasts, substantially increasing uninsured rates.
The firm pointed out that HIX revenue currently represents approximately 5% of Universal Health Services’ total revenue, compared to 10% for HCA and 5% for THC.
Cantor estimates that if 40% of HIX revenues are cut in 2026 and half of those losing HIX subsidies become uninsured and seek unreimbursed care through hospitals’ charity programs, UHS could face EBITDA pressure of approximately 8%.
In other recent news, Universal Health Services reported its second-quarter 2025 earnings, surpassing expectations with an adjusted earnings per share of $5.35, compared to the forecasted $4.93. The company’s revenue also exceeded projections, reaching $4.28 billion against an anticipated $4.24 billion. RBC Capital raised its price target for Universal Health Services to $206 from $201, maintaining a Sector Perform rating, following these earnings results. TD Cowen reiterated its Buy rating on the company, keeping the price target at $226, noting that adjusted EBITDA exceeded consensus estimates by 5% despite a $25 million drag from DC hospital operations.
Cantor Fitzgerald maintained its Neutral rating and a $227 price target, expressing optimism about the company’s EBITDA growth prospects for 2026. The firm highlighted a $50 million tailwind expected from Cedar Hill recovery, with contributions anticipated in the second quarter and the latter half of 2025. These recent developments reflect a positive outlook among analysts regarding Universal Health Services’ financial performance and future growth potential.
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