HCA Healthcare price target lowered to $280 from $300 at Stephens

Stephens lowered the firm’s price target on HCA Healthcare to $280 from $300 and keeps an Overweight rating on the shares. The company’s Q3 results were “moderately disappointing,” as solid core business performance was offset by an EBITDA headwind at Valesco Physician Services, the analyst tells investors. Rising physician subsidy pressures have been a headwind throughout 2023 and the company has prepared investors for Valesco to represent an approximately 50M quarterly drag on EBITDA into 2024, Stephens says. While the company will need to address this situation, the firm notes it has an “excellent” historical track record of implementing effective operational adjustments.