In a report released yesterday, Stephen Baxter from Wells Fargo maintained a Hold rating on Tenet Healthcare (THC – Research Report), with a price target of $150.00.
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Stephen Baxter’s rating is based on a combination of aspects observed in Tenet Healthcare’s recent performance and future outlook. The company’s fourth-quarter results showed adjusted EBITDA that surpassed the guidance midpoint and exceeded estimates, largely due to strength in the Ambulatory sector. However, the hospital segment’s revenue and EBITDA faced challenges, with revenues falling short of expectations and a year-over-year decline in EBITDA.
Looking ahead, Tenet Healthcare’s 2025 guidance aligns with general expectations, but there are moderate concerns. While the overall EBITDA guidance suggests growth, the hospital segment is projected to see a decline, contrasting with the positive outlook for the USPI segment. Additionally, expenses such as supplies have increased, impacting margins. These mixed factors likely led Baxter to adopt a cautious stance, resulting in a Hold rating for THC stock.