Ardent Health initiated with a Buy at Loop Capital

Loop Capital initiated coverage of Ardent Health with a Buy rating and $18 price target. The firm is positive on the company’s favorable demographic tailwinds and believes that Ardent is positioned for margin expansion in the next few years driven by a growing aging and chronically ill population, operating in markets set to outpace the U.S. average in income and population growth, a demand shift to the ambulatory care setting, and its position as a leader in most of its markets, the analyst tells investors in a research note. Loop adds that Ardent will grow in the 8% range over the next two years, while the stock currently trades at 4.6-times on enterprise value to expected forward EBITDA basis.