Tenet Healthcare Corp. has inked a deal with FastMed to sell its urgent care platform for an undisclosed amount. The healthcare company expects the deal to close in the first quarter of 2021. Tenet stock closed 2.1% lower on Friday.
Tenet’s (THC) urgent care platform, which is operated by the CareSpot and MedPost brands, is well-known for high-quality medical care and would thus complement FastMed’s portfolio, the company said. The company said that, “The transaction will add 87 CareSpot and MedPost centers, increasing patient access to FastMed’s healthcare services in Arizona and Texas, while enabling the company to expand into Florida and California where most of the acquired centers are located.”
On Dec. 10, Tenet signed an agreement to acquire a portfolio of up to 45 ambulatory surgery centers from SurgCenter Development for “$1.1 billion in cash and the assumption of approximately $18 million of center-level debt.” (See THC stock analysis on TipRanks)
Following the portfolio acquisition, Mizuho Securities analyst Ann Hynes said that the outlook for Tenet stock has improved. Hynes believes that the deal would help the company to diversify and generate significant earnings accretion. The analyst raised the stock’s price target to $48 (19.2% upside potential) from $32 and maintained a Buy rating.
Meanwhile, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 6 Buys, 4 Holds and 1 Sell. The average price target stands at $42.82 and implies upside potential of about 6.4% to current levels. Shares were up 5.9% year-to-date.
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