Tenet Healthcare's (THC) Q1 results exceeded expectations with adjusted earnings before interest, taxes, depreciation, and amortization coming in nearly 17% above the forecast due to strong volumes, improved payer mix and effective cost controls, RBC Capital Markets said in a note emailed Wednesday.
The firm said Tenet is its top hospital stock pick because of undervaluation relative to its peer HCA Healthcare (HCA).
The company is trading at nearly a 1.8x enterprise value multiple discount to HCA despite having comparable margins and leverage, and this valuation gap is unjustified, especially considering Tenet's improved balance sheet and stronger growth outlook, according to the note.
RBC said that though same-store cases in the ambulatory surgery center segment declined, revenue per case increased due to a strategic shift toward higher-acuity procedures.
The firm reaffirmed its outperform rating on Tenet's stock and raised the price target to $189 from $183.
Price: 140.77, Change: +2.42, Percent Change: +1.75
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。