Mizuho Analyst Raises Price Target on Tenet Healthcare, Maintains Strong Buy Rating

By Don Francis, Editor
February 10, 2024 7:33 AM UTC
Mizuho Analyst Raises Price Target on Tenet Healthcare, Maintains Strong Buy Rating

Mizuho's Ann Hynes raised their price target on Tenet Healthcare (NYSE: THC) by 11.1% from $90 to $100 on 2024/02/09. The analyst maintained their Strong Buy rating on the stock.

In a note assessing Tenet Healthcare's Q4 and FY 2023 print, released on February 8, 2024, the analyst described the company's operating trends as "impressive." Both its acute and ambulatory surgery center segments boasted double-digit adjusted EBITDA growth.

Tenet Healthcare reported better-than-expected results for the fourth quarter of 2023. The company's earnings per share (EPS) came in at $2.68, beating the Zacks Consensus Estimate of $1.58 and showing a 36.7% increase compared to Q4 2022's $1.96. The revenue for the quarter was $5.38 billion, surpassing the Zacks Consensus Estimate of $5.26 billion and representing a 7.8% increase from Q4 2022's $4.99 billion.

For the full fiscal year 2023, Tenet Healthcare reported an EPS of $6.98, a 2.7% increase compared to FY 2022's $6.80. The company's revenue for FY 2023 was $20.55 billion, surpassing FY 2022's $19.17 billion by 7.2%.

Looking ahead, Tenet Healthcare provided guidance for Q1 2024 and FY 2024. For Q1 2024, the company expects an EPS in the range of $1.24 to $1.62 and revenue between $5 billion and $5.2 billion. For the full fiscal year 2024, Tenet Healthcare anticipates an EPS in the range of $5.76 to $6.90 and revenue between $19.9 billion and $20.3 billion.

Commenting on the results, M.D., Chairman & CEO Saum Sutaria stated, "Our businesses performed exceptionally well in 2023, driven by strong same facility revenue growth and disciplined operating management. We carry momentum into 2024 and are focused on continuing to expand access to care and investing in cutting-edge technology for our patients and physician partners, while strategically reducing our debt and growing our ambulatory care and hospital businesses."

On February 9, 2024, other analysts also updated their ratings and price targets for Tenet Healthcare. Cantor Fitzgerald's Sarah James raised their price target by 10.6%, from $94 to $104, and maintained their Strong Buy rating on the stock. RBC Capital's Ben Hendrix raised their price target by 12.4%, from $97 to $109, and maintained their Buy rating on the stock. Truist Securities's David S Macdonald raised their price target by 14.1%, from $92 to $105, and maintained their Strong Buy rating on the stock.

Currently, 100% of top-rated analysts rate Tenet Healthcare as a Strong Buy or Buy. No analysts see it as a Hold, and no analysts recommend or strongly recommend selling the stock.

The consensus forecast among analysts is that Tenet Healthcare's upcoming year will deliver earnings per share (EPS) of $6.97. If the analysts' predictions are accurate, THC's next yearly EPS will be up by 52.4% compared to the previous year.

Since the release of Tenet Healthcare's latest quarterly report on February 8, 2024, the stock price has declined by 1%. However, on a year-over-year basis, the stock has shown strong growth, up by 55.9%. During the same period, Tenet Healthcare has outperformed the S&P 500, which has seen a 23.2% increase.

Mizuho analyst Ann Hynes, who raised the price target on Tenet Healthcare, is ranked by WallStreetZen in the top 8% out of 4,470 Wall Street analysts. With an average return of 8.2% and a win rate of 64.8%, Hynes specializes in the Consumer Defensive and Healthcare sectors.

Tenet Healthcare Corporation is a diversified healthcare services company. The company's general hospitals offer acute, intensive, and critical care services, operating and recovery rooms, coronary care units, radiology and respiratory therapy services, clinical laboratories, and pharmacies. Tenet Healthcare also provides ambulatory surgery and urgent care centers, imaging centers, surgical hospitals, off-campus emergency departments, and micro-hospitals. The company was incorporated in 1975 and is headquartered in Dallas, TX.

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