HCA Healthcare price target lowered to $370 from $380 at BofA

BofA analyst Joanna Gajuk lowered the firm’s price target on HCA Healthcare (HCA) to $370 from $380 and keeps a Buy rating on the shares. HCA’s Q4 EBITDA was in line, but the stock declined 4% on January 24 as the quarter benefited from higher Medicaid state directed payment programs and worry continues to build that there could be cuts to Medicaid spending, notes the analyst. While BofA keeps its 2025/2026 adjusted EBITDA estimates roughly unchanged, it rolls its valuation to its 2027 estimates and applies a lower multiple to reflect the risks as it expects the hospital stocks to be volatile given the continued headlines around potential reforms and policy changes, the analyst tells investors.