Tenet Healthcare (THC) is positioned for continued earnings growth after strong Q2 results and raising its full year guidance, Truist said in a note Monday, citing momentum across its Hospital and Ambulatory businesses.

The brokerage said "hospital trends were strong despite an expected payor mix headwind with solid volumes while ASC continues to roll along fueled by ongoing investment and core trends."

Truist said cash flow generation remains attractive with full year guidance raised, providing incremental optionality around ongoing growth investment and shareholder value creation.

The company reported Q2 revenue of $5.63 billion ahead of Truist estimate of $5.44 billion and consensus $5.43 billion. It also raised full year revenue outlook to between $21.90 billion and $22.50 billion from $21.50 billion to $22.30 billion and adjusted EPS to $20.30 to $21.69 from $16.38 to $18.68.

Truist reiterated the company's buy rating and $270 price target.

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