Tenet Healthcare (NYSE: THC)‘s stock had its “market perform” rating reaffirmed by research analysts at BMO Capital Markets in a report released on Wednesday. They currently have a $40.00 target price on the stock, up from their previous target price of $38.00.
The analysts wrote, “Producing EBITDA growth and modest volume increases, Tenet continues to execute well enough to please the Street. Fourth quarter results included better-than-expected top line growth and continued focus on expense reduction (although expenses came in higher than our model). FY2013 EBITDA guidance remains unchanged. However, changes to expectations around D&A and share count pulled down the expected EPS range. Investor focus remains fixed on exchanges and the 2014 landscape. Tenet provided some early insight into pricing today by highlighting the inclusion of discounted commercial rates within three Blues contracts that will be applied to exchange plans. If the hospital industry can command these rates across the new distribution channel, it will likely aid EBITDA margins. It could also contribute to higher plan price points on the exchange.”
Shares of Tenet Healthcare traded up 0.87% during mid-day trading on Wednesday, hitting $38.20. Tenet Healthcare has a one year low of $17.24 and a one year high of $40.94. The stock’s 50-day moving average is currently $37.94. The company has a market cap of $4.067 billion and a P/E ratio of 272.45.
Tenet Healthcare last released its earnings data on Tuesday, February 26th. The company reported $0.45 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.68 by $0.23. The company had revenue of $2.33 billion for the quarter, compared to the consensus estimate of $2.34 billion. During the same quarter in the prior year, the company posted $0.10 earnings per share. The company’s quarterly revenue was up 7.6% on a year-over-year basis. Analysts expect that Tenet Healthcare will post $2.87 EPS for the current fiscal year.
A number of other analysts have also recently weighed in on THC. Analysts at Raymond James reiterated an “outperform” rating on shares of Tenet Healthcare in a research note to investors on Tuesday, February 12th. They now have a $45.00 price target on the stock. Separately, analysts at Deutsche Bank raised their price target on shares of Tenet Healthcare from $38.00 to $43.00 in a research note to investors on Wednesday, January 30th. They now have a “buy” rating on the stock.
Tenet Healthcare Corporation, and its subsidiaries (Tenet) is an investor-owned health care services company whose subsidiaries and affiliates own and operate acute care hospitals, ambulatory surgery centers, diagnostic imaging centers and related health care facilities.
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