Universal Health price target raised to $222 from $189 at RBC Capital

RBC Capital raised the firm’s price target on Universal Health to $222 from $189 and keeps a Sector Perform rating on the shares. The firm is updating its model following the company’s Q2 results in July, though consistent with the management’s commentary at an industry event last week, it also sees moderating acute volume in the back half of this year relative to the “difficult” late-2023 comps as well as recovering behavioral patient day growth approaching about 3% toward the end of the year, the analyst tells investors in a research note. RBC is raising its FY24 EPS view on Universal Health to $15.80 from $13.78 and its FY25 view to $17.78 from $15.04.