Stephen Baxter, an analyst from Wells Fargo, maintained the Buy rating on Universal Health (UHS – Research Report). The associated price target is $225.00.
Stephen Baxter has given his Buy rating due to a combination of factors that indicate a positive outlook for Universal Health’s stock. Despite some uncertainties surrounding Medicaid supplemental payments, the company’s core performance in the fourth quarter was robust, with EBITDA surpassing expectations. The demand environment showed some weakness, particularly in the behavioral segment, but this is expected to be temporary, with pricing and cost management showing strength.
Looking ahead to 2025, Universal Health has provided a wider guidance range, reflecting caution regarding potential changes in government reimbursements. However, the company anticipates solid growth in both acute and behavioral sectors, with EBITDA expected to grow significantly. Although there is some risk associated with Medicaid supplemental payments due to political factors, the overall growth prospects and strong core performance underpin the Buy rating.
According to TipRanks, Baxter is a 3-star analyst with an average return of 0.9% and a 39.72% success rate. Baxter covers the Healthcare sector, focusing on stocks such as Cardinal Health, Centene, and CVS Health.
In another report released on March 4, TD Cowen also maintained a Buy rating on the stock with a $226.00 price target.