Tenet Healthcare Downgraded by Zacks to “Neutral” (THC)
Tenet Healthcare (NYSE: THC) was downgraded by Zacks from an “outperform” rating to a “neutral” rating in a note issued to investors on Thursday. They currently have a $46.00 target price on the stock.
Zacks‘ analyst wrote, “We are downgrading our recommendation on Tenet Healthcare to Neutral based on increasing operating expenses, and bad debt along with a high debt-to-capital ratio. The company’s fourth-quarter earnings fell short of the Zacks Consensus Estimate but outperformed the year-ago results. Growth in revenues, largely driven by higher volumes and improved pricing fueled the year-over-year improvement, along with cost control measures. Adjusted admissions continued to grow for the 9th consecutive quarter. In the long-term, increasing operating revenues and growth through acquisitions are expected to be beneficial. Moreover, the recent capital management plans are expected to enhance returns, capital structure and shareholder value. Overall, we believe that strong organic and inorganic growth can help boost the future earnings outlook. “
Tenet Healthcare (NYSE: THC) traded up 1.81% on Thursday, hitting $44.96. Tenet Healthcare has a 52-week low of $17.24 and a 52-week high of $44.33. The stock’s 50-day moving average is currently $39.7. The company has a market cap of $4.689 billion and a price-to-earnings ratio of 34.07.
Tenet Healthcare (NYSE: THC) last posted its quarterly earnings results on Tuesday, February 26th. The company reported $0.45 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.68 by $0.23. The company had revenue of $2.33 billion for the quarter, compared to the consensus estimate of $2.34 billion. During the same quarter last year, the company posted $0.10 earnings per share. The company’s quarterly revenue was up 7.6% on a year-over-year basis. On average, analysts predict that Tenet Healthcare will post $2.76 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on THC. Analysts at UBS AG raised their price target on shares of Tenet Healthcare from $41.00 to $46.00 in a research note to investors on Tuesday. They now have a “neutral” rating on the stock. Separately, analysts at Deutsche Bank reiterated a “buy” rating on shares of Tenet Healthcare in a research note to investors on Friday, March 8th. They now have a $46.00 price target on the stock. Finally, analysts at CRT Capital upgraded shares of Tenet Healthcare from a “fair value” rating to a “buy” rating in a research note to investors on Friday, March 8th. They now have a $51.00 price target on the stock.
Tenet Healthcare Corporation, and its subsidiaries (Tenet) is an investor-owned health care services company whose subsidiaries and affiliates own and operate acute care hospitals, ambulatory surgery centers, diagnostic imaging centers and related health care facilities.
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