In a report released on February 15, Ann Hynes from Mizuho Securities reiterated a Buy rating on HCA Healthcare (HCA – Research Report), with a price target of $345.00.
Ann Hynes has assigned a Buy rating to HCA Healthcare following a comprehensive review of the company’s performance and market position. This optimistic outlook stems from the company’s strong volume growth and positive demand trends as we move into 2024. The CEO of HCA Healthcare has expressed confidence in the current demand environment, which is expected to contribute to potential upside in their guidance. Moreover, admission trends are anticipated to exceed the forecasted 3-4% rise, serving as the primary catalyst for earnings potential. Hynes believes that the company’s earnings visibility is robust, underpinned by sustained volume improvements, favorable pricing prospects, and a stable to improving cost structure.
Additionally, Hynes highlights that pricing trends are likely to continue to benefit the company, particularly due to regulatory changes such as the enforcement of the “two-midnight rule” and a significant increase in individual marketplace enrollment. While there are concerns regarding physician fees, the overall cost trends are stable or improving, with potential for significant EBITDA gains if the company can revert to pre-pandemic contract labor levels. Hynes reaffirms a price target of $345 for HCA Healthcare, based on a blended valuation approach that takes into account multiple financial metrics and forecasts, reinforcing her Buy recommendation.
In another report released on February 12, TD Cowen also maintained a Buy rating on the stock with a $371.00 price target.
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Based on the recent corporate insider activity of 92 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HCA in relation to earlier this year.
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HCA Healthcare (HCA) Company Description:
Founded in 1968, HCA Healthcare, Inc. is a healthcare services company, based in Tennessee. The company operates general and psychiatric hospitals, freestanding surgery centers and emergency rooms, and urgent care centers. It also offers a full range of services to accommodate medical specialties such as internal medicine, general surgery, cardiology, oncology, neurosurgery, orthopedics and obstetrics, as well as diagnostic and emergency services.
Read More on HCA:
- Appaloosa takes new position in Oracle, boosts Amazon, Microsoft stakes
- HCA Healthcare promotes Michael McAlevey to chief legal, administrative officer
- HCA Healthcare CIO P. Martin Paslick retires, Chad Wasserman succeeds
- HCA Healthcare price target raised to $303 from $291 at Wells Fargo
- HCA Healthcare price target raised to $345 from $310 at Mizuho
