Universal Health Services stock price target raised to $206 from $201 at RBC

Investing.com - RBC Capital has raised its price target on Universal Health Services (NYSE:UHS) to $206.00 from $201.00 while maintaining a Sector Perform rating on the stock. According to InvestingPro data, the healthcare provider demonstrates exceptional financial health with a perfect Piotroski Score of 9 and maintains strong operational metrics with a 42.9% gross profit margin.

The price target increase follows Universal Health Services’ second-quarter 2025 results, which RBC described as "decent" with behavioral volumes showing improvement, though still remaining below management’s expectations.

RBC noted that Universal Health Services revised its guidance with several offsetting factors at play, including Tennessee Directed Payment Program benefits counterbalancing certain headwinds.

These headwinds include approximately $50 million in start-up losses related to the company’s Cedar Hill Medical (TASE:BLWV) Center in Washington D.C., as well as softer-than-expected behavioral volumes.

Despite the price target increase, RBC maintained its Sector Perform rating on Universal Health Services stock, indicating a neutral stance on the company’s near-term prospects.

In other recent news, Universal Health Services reported second-quarter 2025 earnings that surpassed expectations. The company achieved an adjusted earnings per share of $5.35, exceeding the projected $4.93, marking an 8.52% surprise. Revenue also beat forecasts, reaching $4.28 billion compared to the anticipated $4.24 billion. TD Cowen reiterated its Buy rating on Universal Health Services with a price target of $226.00, noting that the company posted adjusted EBITDA exceeding consensus estimates by 5%, despite a $25 million drag from its DC hospital operations. Meanwhile, Cantor Fitzgerald maintained its Neutral rating and a $227.00 price target, citing optimism about the company’s EBITDA growth prospects in 2026. Cantor highlighted a $50 million tailwind expected from the Cedar Hill recovery, with contributions anticipated in 2025. These developments reflect a positive outlook for Universal Health Services among analysts.

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