Tenet Healthcare price target raised to $155 from $130 at Truist

Truist analyst David MacDonald raised the firm’s price target on Tenet Healthcare to $155 from $130 and keeps a Buy rating on the shares as part of a broader research note previewing Q2 results in Healthcare Services. The sector offers “attractive core demand drivers”, ongoing M&A opportunity, and strong relative positioning, and while “ongoing selectivity” remains important, the firm remains bullish on the group’s long-term drivers – demographics, move to value-based care, and site of service redirection – underpinning its solid growth, the analyst tells investors in a research note. For the company, Truist notes that it sees a favorable utilization backdrop underpinning solid volume trends and expects the ongoing improvement on the labor/physician front.