Ardent Health's (ARDT) 2026 guidance amid elevated professional fee growth and continued payer denials is relatively conservative, presenting an opportunity for outperformance for the remainder of the year, RBC Capital Markets said in a Monday research report.

The company's progress of its IMPACT program is encouraging as management expects annual savings of $55 million, up from $40 million last quarter, analysts wrote.

The company recorded indications that professional fees and payer denial were moderating in Q4, but management did not price in any improvement in 2026, which provides upside to the outlook, according to the note.

After lapping payer denial activity, professional fee, and ACA enhanced subsidy expiration challenges, the company believes it will return to adjusted EBITDA growth in 2027, the brokerage stated.

The brokerage said it reiterated its outperform rating on the stock and cut its price target to $13 per share from $14.

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