Tenet Healthcare Rated Overweight with 14.48% Upside Potential

A recent report reveals that Keybanc has initiated coverage on Tenet Healthcare with an Overweight recommendation. The average target price suggests a notable upside. Analysts indicate a projected revenue increase along with an encouraging EPS forecast, signaling a positive outlook for investors.

Date: 13-10-2024

AI Rating: 7

According to the report, Keybanc has initiated coverage of Tenet Healthcare (NYSE: THC) with an Overweight recommendation, indicating a bullish sentiment towards the stock. This is further supported by an average one-year price target of $178.38/share, which suggests a potential increase of 14.48% from its latest closing price of $155.82/share. This forecast is significant as it indicates investor optimism regarding the company's future performance.

The report also notes a projected annual revenue for Tenet Healthcare of $21,258MM, representing a modest increase of 1.66%. Additionally, the estimated non-GAAP EPS is projected to be 7.40, providing further assurance to potential investors about profitability.

Furthermore, the fund sentiment appears positive with an increase in the number of institutional owners by 16.21% in the last quarter. The average portfolio weight allocated to Tenet Healthcare has also risen slightly by 7.27%, which reflects growing interest among fund managers. However, total shares owned by institutions dropped by 2.48%, indicating some cautiousness among institutional investors.

The put/call ratio of 0.82 suggests a positive outlook among options traders, reinforcing the bullish sentiment. Moreover, notable institutional investors like Price T Rowe Associates have increased their shares in the company, while others like Invesco and Glenview Capital Management have made adjustments in their positions.

Overall, the combination of the Overweight recommendation, positive revenue growth, EPS outlook, and bullish options sentiment suggests that investors may consider Tenet Healthcare as an attractive opportunity in the current market conditions.

Stocks: THC