Tenet Healthcare Corporation (NYSE:THC) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Friday.

According to Zacks, “Tenet Healthcare is well poised for long term growth on the back of its inorganic strategies. The company continues to divest its non core and unprofitable businesses in order to streamline its core operations. Tenet is undertaking cost reduction initiative that will help it lower annual operating expenses by $150 million, with annualized run-rate savings to be achieved by 2018 end.  However, the shares have  underperformed the industry in a year's time. Tenet Healthcare has a high level of uncollectible accounts. Following lackluster second-quarter 2017 results, the company has lowered its guidance for 2017. Rising level of bad debts has led to a spike in interest expenses, weighing on margins. It will release third quarter results on Nov 6. The company estimates third quarter adjusted loss of 17 cents on revenues of $4.6 billion, both down year over year.”

THC has been the topic of several other reports. Robert W. Baird reaffirmed a “buy” rating and issued a $23.00 price target on shares of Tenet Healthcare Corporation in a report on Thursday, August 24th. Citigroup Inc. reaffirmed a “hold” rating and issued a $16.00 price target on shares of Tenet Healthcare Corporation in a report on Thursday, September 14th. Royal Bank Of Canada reaffirmed a “hold” rating and issued a $19.00 price target on shares of Tenet Healthcare Corporation in a report on Monday, September 25th. Mizuho reaffirmed a “neutral” rating and issued a $14.00 price target on shares of Tenet Healthcare Corporation in a report on Sunday, August 20th. Finally, Credit Suisse Group began coverage on shares of Tenet Healthcare Corporation in a report on Thursday. They issued a “neutral” rating and a $15.00 price target on the stock. Two equities research analysts have rated the stock with a sell rating, ten have given a hold rating and six have given a buy rating to the company. The stock currently has a consensus rating of “Hold” and an average target price of $20.20.

Tenet Healthcare Corporation (NYSE:THC) last posted its quarterly earnings results on Monday, August 7th. The company reported ($0.17) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.17). The firm had revenue of $14.80 billion for the quarter, compared to analysts’ expectations of $4.90 billion. Tenet Healthcare Corporation had a negative net margin of 2.85% and a negative return on equity of 5.11%. The firm’s quarterly revenue was up 204.1% on a year-over-year basis. During the same period in the prior year, the company posted $0.38 earnings per share.

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Hedge funds have recently added to or reduced their stakes in the stock. BNP Paribas Arbitrage SA increased its holdings in shares of Tenet Healthcare Corporation by 34.6% in the 2nd quarter. BNP Paribas Arbitrage SA now owns 66,690 shares of the company’s stock worth $1,290,000 after acquiring an additional 17,151 shares during the period. Private Management Group Inc. increased its holdings in shares of Tenet Healthcare Corporation by 1.2% in the 2nd quarter. Private Management Group Inc. now owns 813,918 shares of the company’s stock worth $15,741,000 after acquiring an additional 9,386 shares during the period. Franklin Resources Inc. increased its holdings in shares of Tenet Healthcare Corporation by 25.0% in the 2nd quarter. Franklin Resources Inc. now owns 5,000,000 shares of the company’s stock worth $96,700,000 after acquiring an additional 1,000,000 shares during the period. Legal & General Group Plc increased its holdings in shares of Tenet Healthcare Corporation by 5.6% in the 2nd quarter. Legal & General Group Plc now owns 290,027 shares of the company’s stock worth $5,610,000 after acquiring an additional 15,389 shares during the period. Finally, Proxima Capital Management LLC increased its holdings in shares of Tenet Healthcare Corporation by 8.3% in the 2nd quarter. Proxima Capital Management LLC now owns 103,939 shares of the company’s stock worth $2,010,000 after acquiring an additional 8,000 shares during the period.

About Tenet Healthcare Corporation

Tenet Healthcare Corporation (Tenet) is a healthcare services company. The Company operates regionally focused, integrated healthcare delivery networks in large urban and suburban markets in the United States. The Company’s segments include Hospital Operations and Other, Ambulatory Care and Conifer. As of December 31, 2016, its subsidiaries operated 79 hospitals, including three academic medical centers, two children’s hospitals, two specialty hospitals and one critical access hospital.

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