logo
  Join        Login             Stock Quote

Tenet Healthcare (THC) Upgraded To 'Buy' By Deutsche Bank; PT Raised

 December 17, 2012 03:02 PM
 


(By Balachander) Tenet Healthcare Corp. (NYSE: THC) shares were upgraded to "buy" from "hold" and price target raised to $38 from $31 by Deutsche Bank (DB).

"THC's response to CYH's overture left a lasting bad taste in our mouths," the bank wrote. "However, in taking a fresh look at THC, we conclude that its outlook has become more compelling."

DB said its upgrade is underpinned by clear signs of improving business mix and margins due especially to gains in outpatient, tangible momentum in Conifer, and a more sustainable FCF profile going forward.

Due to a more favorable outlook, the bank believes THC should be positioned to garner an in-line (~6x) fwd EV/EBITDA multiple, putting PT at $38.

[Related -Futures Down On China Worries; Vanguard Health Systems Inc. (VHSSurge]

The bank said most of the investor-owned chains will see 2013 EBITDA growth clustered in the low single-digit range, with organic growth for many in the 0 percent to 3 percent area.

THC's outpatient revenue mix has improved around 100 bps over the past year to 34 percent, yet it is still accelerating upward and this trend has positive margin implications, DB wrote.

The bank also believes M&A and business wins within the Conifer segment will draw even greater attention to segment revenue/EBITDA.

The stock, which has been trading in the 52-week range of $17.24 to $31.67, traded 2.29 percent higher at $31.33 on Monday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageMBIA Inc. (MBI) : BTI's $12 a Tough Task

MBIA Inc. (NYSE:MBI) is doing well on a day stocks are struggling The guarantee insurance company is the read on...

article imageUrban Outfitters, Inc. (URBN) Q2 Earnings Preview: A Snug Fit

Urban Outfitters, Inc. (NASDAQ:URBN) will hold a webcast to discuss its second quarter of fiscal-year 2015 read on...

article imageEstee Lauder Companies Inc. (EL) Q4 Earnings Preview: Options Player Betting On EL’s EPS Looking Pretty

Estee Lauder Companies Inc. (NYSE:EL) will release fiscal 2014 fourth quarter and full year financial read on...

article imageHerbalife Ltd. (HLF): 3 Reasons To Pay Attention to Recent Insider Buying

Well, well, well… it looks as if boardroom buyers viewed the recent selloff as an opportunity to buy. read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.