Tenet Healthcare (THC) is positioned to capture the growth from outpatient trends due to its leadership in the ambulatory surgery centers space with 518 centers and 25 surgical hospitals, Morgan Stanley said in a note on Monday.
The ASC model offers stronger financial benefits for Tenet, with much higher earnings margins and lower capital requirements than traditional hospital segments, according to the note.
The firm said that orthopedic procedures are a major driver of the shift toward ASCs. Tenet has identified orthopedics as a top growth area, followed by urology, cardiology, gastroenterology, and cancer care.
Morgan Stanley said the company's stock remains undervalued relative to its potential, "which could prove conservative if the company continues to execute well."
The firm raised its price target on Tenet's stock to $175 from $165 with an overweight rating.
Price: 149.71, Change: +1.68, Percent Change: +1.13
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。