Zacks Investment Research Upgrades Tenet Healthcare Corp. (THC) to “Buy”
Zacks Investment Research upgraded shares of Tenet Healthcare Corp. (NYSE:THC) from a hold rating to a buy rating in a research report sent to investors on Tuesday. Zacks Investment Research currently has $24.00 target price on the stock.
According to Zacks, “Tenet Healthcare’s consistent growth in operating revenues backed by its prudent inorganic growth story remains the major strength. In addition, frequent product launches and sound capital structure also help in driving profitability. The company also enjoys a strong competitive advantage in benefiting from extended insurance coverage. Going ahead, the Vanguard acquisition, divestitures and an impressive inorganic profile are expected to be accretive to earnings as well. However, for serving a large number of uninsured and underinsured patients with a high burden of co-payments and deductibles, the company has a high level of uncollectible accounts and suffering from rising bad debts. It also has been experiencing high levels of operating expenses over past few years. Deployment of a substantial part of its cash flow in paying the interests on its debts also keeps the bottom line under pressure.”
Other equities research analysts have also recently issued research reports about the company. Leerink Swann reiterated a market perform rating and set a $28.00 price objective (down previously from $30.00) on shares of Tenet Healthcare Corp. in a research note on Sunday, September 4th. Barclays PLC reiterated a buy rating and set a $39.00 price objective on shares of Tenet Healthcare Corp. in a research note on Friday, August 19th. Citigroup Inc. dropped their price objective on Tenet Healthcare Corp. from $36.00 to $31.00 and set a neutral rating on the stock in a research note on Thursday, August 4th. Morgan Stanley reiterated a hold rating and set a $38.00 price objective on shares of Tenet Healthcare Corp. in a research note on Tuesday, August 2nd. Finally, Mizuho reiterated a neutral rating and set a $28.00 price objective (down previously from $33.00) on shares of Tenet Healthcare Corp. in a research note on Tuesday, August 2nd. One investment analyst has rated the stock with a sell rating, ten have assigned a hold rating and ten have given a buy rating to the stock. Tenet Healthcare Corp. currently has a consensus rating of Hold and a consensus price target of $32.64.
Tenet Healthcare Corp. (NYSE:THC) opened at 20.70 on Tuesday. Tenet Healthcare Corp. has a 12 month low of $20.40 and a 12 month high of $37.38. The company’s market capitalization is $2.06 billion. The company has a 50-day moving average price of $22.99 and a 200 day moving average price of $27.61.
Tenet Healthcare Corp. (NYSE:THC) last released its earnings results on Monday, August 1st. The company reported $0.38 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.52 by $0.14. The firm earned $4.87 billion during the quarter, compared to the consensus estimate of $4.82 billion. Tenet Healthcare Corp. had a negative net margin of 1.15% and a positive return on equity of 14.47%. The company’s revenue was up 8.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.75 EPS. On average, equities research analysts forecast that Tenet Healthcare Corp. will post $1.54 EPS for the current fiscal year.
Several hedge funds have recently added to or reduced their stakes in the company. BlackRock Fund Advisors raised its stake in Tenet Healthcare Corp. by 94.3% in the second quarter. BlackRock Fund Advisors now owns 3,611,528 shares of the company’s stock valued at $99,823,000 after buying an additional 1,753,061 shares during the period. Bridger Management LLC acquired a new stake in shares of Tenet Healthcare Corp. during the first quarter valued at $25,113,000. Old Mutual Global Investors UK Ltd. increased its stake in shares of Tenet Healthcare Corp. by 164.2% in the second quarter. Old Mutual Global Investors UK Ltd. now owns 824,233 shares of the company’s stock valued at $22,781,000 after buying an additional 512,212 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in shares of Tenet Healthcare Corp. by 75.7% in the second quarter. Dimensional Fund Advisors LP now owns 1,164,036 shares of the company’s stock valued at $32,174,000 after buying an additional 501,551 shares in the last quarter. Finally, Bank of New York Mellon Corp increased its stake in shares of Tenet Healthcare Corp. by 49.2% in the second quarter. Bank of New York Mellon Corp now owns 1,296,517 shares of the company’s stock valued at $35,837,000 after buying an additional 427,803 shares in the last quarter.
Tenet Healthcare Corp. Company Profile
Tenet Healthcare Corporation (Tenet) is a healthcare services company. The Company operates regionally focused, integrated healthcare delivery networks in large urban and suburban markets in the United States. The Company operates through three segments: Hospital Operations and other, Ambulatory Care and Conifer.
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