Tenet Healthcare (THC) previewed "strong" 2025 results, expecting adjusted EBITDA at the upper-end of its guidance range, RBC Capital said in a Monday note.

"The solid results reflect strong SS growth and expense management," the report said. SS refers to same store.

RBC analysts said they are increasing their 2025 adjusted EBITDA estimate to $4.562 billion from $4.521 billion, near the upper-end of its guidance range.

The report also said it was not ideal that the company lost its CommonSpirit Health's contract.

"We believe the proceeds from the contract termination and purchase of CommonSpirit's equity stake more than offset the lost contract," the note said.

RBC raised its price target to $253 from $252 while keeping its outperform rating, saying that Tenet remains its top hospital pick on lower exchange volume and stronger growth outlook.

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