HCA Healthcare (HCA) could see productivity gains from artificial intelligence that support valuation multiple expansion, UBS said Monday, raising its price target on the stock to $635 from $598 and maintaining a buy rating.

The firm said HCA's scale and data advantages position it to benefit from AI adoption across administrative, operational and clinical workflows, potentially improving efficiency in a hospital sector that has historically seen modest productivity growth.

UBS also noted growing investor interest in healthcare companies viewed as potential AI beneficiaries, which could help the stock break above its long-standing 8x to 10x EV/EBITDA trading range.

Additionally, the bank said potential Medicaid supplemental payment updates across several states could provide upside to 2026 estimates.

Price: 543.99, Change: +11.69, Percent Change: +2.20