Leerink Partners analyst Whit Mayo reiterated a Buy rating on Tenet Healthcare (THC – Research Report) on April 29 and set a price target of $170.00.
Whit Mayo has given his Buy rating due to a combination of factors that highlight Tenet Healthcare’s strong performance and growth potential. The company’s first-quarter results for 2025 exceeded expectations, driven by robust demand, a favorable payer mix, and effective cost management. These factors have contributed to Tenet Healthcare operating at a higher run-rate, with significant momentum in both its USPI and Acute segments.
Additionally, the company’s revenue from its USPI segment has been bolstered by strong pricing and growth in high-acuity procedures, such as joint replacements. Despite lowering the price target to $170, Whit Mayo raised the EBITDA forecasts for 2025 and 2026, indicating confidence in the company’s future earnings potential. Overall, the stock appears undervalued relative to its growth prospects, justifying the Buy rating.
In another report released yesterday, UBS also maintained a Buy rating on the stock with a $230.00 price target.
THC’s price has also changed moderately for the past six months – from $162.760 to $138.350, which is a -15.00% drop .