Zacks Downgrades Tenet Healthcare Corp. to Underperform (THC)
Tenet Healthcare Corp. (NYSE:THC) was downgraded by Zacks from a “neutral” rating to an “underperform” rating in a research report issued to clients and investors on Wednesday, American Banking News reports. They currently have a $42.00 price target on the stock. Zacks‘ price objective points to a potential downside of 9.11% from the company’s current price.
Zacks‘ analyst wrote, “We are downgrading our recommendation on Tenet Healthcare to Underperform as a consistent decline in admissions and waning cash balance are likely to weigh on the positives. Moreover, the lowered adjusted EBITDA guidance on the basis of lower than expected inpatient volumes in the first half of 2013, further tempers our downward recommendation. Tenet Healthcare’s second-quarter earnings lagged the Zacks Consensus Estimate but fared well year over year on the back of growth in revenues and cost control. The quarter experienced strong increase in outpatient visits and improved commercial pricing. The recent capital management plans are expected to enhance returns, capital structure and shareholder value. However, rising bad debt levels and the overhang of lawsuits raise concern.”
THC has been the subject of a number of other recent research reports. Analysts at Goldman Sachs Group Inc. upgraded shares of Tenet Healthcare Corp. from a “neutral” rating to a “buy” rating in a research note to investors on Tuesday. They now have a $55.00 price target on the stock, up previously from $47.00. Separately, analysts at Deutsche Bank raised their price target on shares of Tenet Healthcare Corp. from $55.00 to $65.00 in a research note to investors on Monday. They now have a “buy” rating on the stock. Finally, analysts at RBC Capital cut their price target on shares of Tenet Healthcare Corp. from $52.00 to $47.00 in a research note to investors on Monday, August 12th. They now have a “sector perform” rating on the stock. One analyst has rated the stock with a sell rating, seven have given a hold rating and twelve have given a buy rating to the company’s stock. The company has an average rating of “Buy” and an average target price of $48.78.
In other Tenet Healthcare Corp. news, Director John Ellis Bush sold 16,582 shares of the company’s stock on the open market in a transaction dated Thursday, October 3rd. The stock was sold at an average price of $45.10, for a total transaction of $747,848.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.
Shares of Tenet Healthcare Corp. (NYSE:THC) traded down 1.32% on Wednesday, hitting $45.60. 712,330 shares of the company’s stock traded hands. Tenet Healthcare Corp. has a 52 week low of $22.86 and a 52 week high of $49.47. The stock has a 50-day moving average of $40.95 and a 200-day moving average of $43.50. The company’s market cap is $4.633 billion.
Tenet Healthcare Corp. (NYSE:THC) last released its earnings data on Tuesday, August 6th. The company reported ($0.49) earnings per share for the quarter, missing the analysts’ consensus estimate of $0.75 by $1.24. The company had revenue of $2.42 billion for the quarter, compared to the consensus estimate of $2.46 billion. During the same quarter last year, the company posted $0.10 earnings per share. Tenet Healthcare Corp.’s revenue was up 6.9% compared to the same quarter last year. On average, analysts predict that Tenet Healthcare Corp. will post $2.26 earnings per share for the current fiscal year.
Tenet Healthcare Corporation (NYSE:THC), along with its subsidiaries, is an investor-owned health care services company whose subsidiaries and affiliates primarily operated 49 hospitals, 117 outpatient centers and Conifer Health Solutions (Conifer), which provides business process solutions to more than 600 hospital and other clients nationwide.
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