Ardent Health initiated with a Buy at Citi

Citi initiated coverage of Ardent Health with a Buy rating and $21 price target. The company’s “differentiated” joint venture-style model with not-for-profit health systems combines its clinical and operational acumen with the partner’s access points, regional presence, and brand to drive volume and economics to the benefit of both parties, the analyst tells investors in a research note. The firm says Ardent enjoys favorable Medicaid supplemental payment tailwinds. It believes the company is well positioned to capitalize near-term topline and margin expansion opportunities, as well as further augment growth with more partners down the line.