Tenet Healthcare initiated with an Overweight at JPMorgan

JPMorgan analyst Calvin Sternick initiated coverage of Tenet Healthcare with an Overweight rating and $72 price target. The analyst likes Tenet’s exposure to the ambulatory surgery center business, saying it should continue to benefit from secular growth tailwinds and drive strong free cash flow generation. The stock’s current valuation overly discounts near-term operational headwinds, the analyst tells investors in a research note. The firm believes Tenet’s reduced leverage and stronger free cash flow offer investors a relatively more attractive risk/ reward profile.