Stock market today: Dow in fresh record close as Powell signals rate cut incoming
Investing.com - TD Cowen has reiterated its Buy rating on Universal Health Services (NYSE:UHS) with a price target of $226.00, according to a research note issued by the firm. Currently trading at $160.39, the stock appears undervalued according to InvestingPro’s Fair Value model, with a P/E ratio of just 8.9x.
The healthcare services provider posted adjusted EBITDA that exceeded consensus estimates by 5%, despite facing a $25 million drag from its DC hospital operations during the quarter.
The company benefited from a $101 million net Directed Payment Program (DPP) contribution, including payments from Tennessee, which analysts may not have fully incorporated into their second-quarter 2025 estimates.
Universal Health Services has raised its fiscal year 2025 EBITDA midpoint guidance by 3.3%, accounting for anticipated DPP payments from Tennessee and other sources, while also factoring in new DC hospital operational challenges and lower behavioral volumes.
The net effect of these adjustments resulted in an $80 million increase to the company’s EBITDA guidance for the full year.
In other recent news, Universal Health Services reported its second-quarter 2025 earnings, exceeding analyst expectations. The company achieved an adjusted earnings per share (EPS) of $5.35, surpassing the projected $4.93, marking an 8.52% surprise. Revenue also outperformed forecasts, reaching $4.28 billion compared to the anticipated $4.24 billion. These results highlight the company’s strong performance in the quarter. Additionally, various analyst firms have taken note of these developments, with some adjusting their ratings on the stock. While specific upgrades or downgrades were not detailed in the reports, the earnings beat has certainly drawn attention from the analyst community. Investors are likely to keep a close watch on Universal Health Services as these financial results reflect robust business operations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.