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On Monday, Loop Capital Markets initiated coverage on Ardent Health Partners Inc (NYSE:ARDT) stock with a Buy rating and an $18.00 price target.
The firm highlighted Ardent Health's status as a leading hospital and healthcare service provider in urban middle-market areas. The company's operations include both acute and ambulatory care facilities.
Ardent Health is recognized for its strong presence in its key markets, and Loop Capital sees positive demographic trends that could support the company's growth.
The analyst noted several factors that could drive margin expansion in the coming years, including an aging population with chronic illnesses, operations in markets expected to outperform the US average in terms of income and population growth, a shift in demand towards ambulatory care, and Ardent Health's market leadership. Additionally, the company's joint-venture centric model is seen as a differentiator in the industry.
Loop Capital projects that Ardent Health will achieve $421 million in Adjusted EBITDA, after accounting for non-controlling interest, on a total revenue of $5.8 billion in 2024. For 2025, the forecast is $617 million in Adjusted EBITDA on $6.3 billion in revenue.
The company is expected to grow at a rate of approximately 8% over the next two years. With the stock currently trading at 4.6 times its estimated 2025 enterprise value to EBITDA, Loop Capital has given a favorable outlook with its Buy rating and $18 price target.
In other recent news, Ardent Health Partners Inc. has been the subject of several analyst notes. Morgan Stanley initiated coverage on the company, assigning an Overweight rating and a price target of $27.00, noting the company's potential to capitalize on demographic shifts and strong market presence.
The next major event for Ardent is the earnings report scheduled for August, with Morgan Stanley projecting a year-over-year adjusted admissions growth for Q2 and Q3 of 2024.
Simultaneously, RBC Capital initiated coverage on Ardent Health, assigning an Outperform rating with a price target of $23.00. The firm cited Ardent Health's dominant role in expanding markets and strategic expansion within existing markets, especially through the development of ambulatory surgery services.
On the other hand, JPMorgan initiated coverage with a Neutral rating and a price target of $18.00, expressing concerns about the company needing to prove its capabilities and success in a competitive healthcare market. These recent developments provide insight into the differing perspectives of analysts on Ardent Health's future performance.
InvestingPro Insights
As Loop Capital Markets provides a bullish outlook on Ardent Health Partners Inc (NYSE:ARDT), insights from InvestingPro align with some aspects of their analysis. With a market capitalization of $2.2 billion, Ardent Health is trading at a P/E ratio of 30.41 based on the last twelve months as of Q1 2024, indicating a market assessment of its profitability potential. The company's revenue growth of 9.27% in Q1 2024 suggests a solid trajectory in line with Loop Capital's growth rate expectations.
An InvestingPro Tip points out that Ardent Health's stock is trading near its 52-week low, which could indicate a potential entry point for investors believing in the company's fundamentals and long-term strategy. Additionally, analysts predict the company will be profitable this year, supporting Loop Capital's positive stance. It's noteworthy that Ardent Health has been profitable over the last twelve months, which may reassure investors of its financial health.
For those interested in further insights, there are additional InvestingPro Tips available for Ardent Health, providing a deeper dive into the company's performance and forecasts. Visit https://www.investing.com/pro/ARDT for a comprehensive analysis.
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