Tenet Healthcare's Price Target Raised to $194 by Mizuho

Mizuho analyst Ann Hynes has raised Tenet Healthcare's price target to $194.00, a 5.43% increase from $184.00. The "Outperform" rating remains unchanged. Tenet Healthcare's average target price is $186.87, with a high estimate of $230.00 and a low estimate of $154.00. The average target implies an upside of 6.83% from the current price.

Title: Mizuho Analyst Boosts Price Target for Tenet Healthcare

Mizuho analyst Ann Hynes has raised Tenet Healthcare's price target to $194.00, a 5.43% increase from the previous target of $184.00. The "Outperform" rating remains unchanged. This adjustment comes ahead of the company's Q2 earnings outlook, with analysts forecasting an average target price of $186.87, ranging from $154.00 to $230.00. The average target implies an upside of 6.83% from the current price of $173.66 [2].

Tenet Healthcare (NYSE: THC) reported strong first-quarter 2025 results, with net operating revenues of $5.2 billion and consolidated adjusted EBITDA of $1.163 billion, representing a 14% growth over the previous year. The adjusted EBITDA margin improved by 320 basis points to 22.3%, indicating robust growth and operating discipline. The company's USPI adjusted EBITDA grew 16%, with same-facility revenues increasing by 6.8%, driven by a 12% growth in total joint replacements. The Hospital Segment's adjusted EBITDA grew 12% to $707 million, with same-store hospital admissions up 4.4% and revenue per adjusted admission up 2.8% [2].

Mizuho's upgrade reflects the company's strong earnings prospects, particularly in the hospital segment, despite ongoing cost challenges faced by managed care companies. The positive earnings outlook is supported by a favorable view from a survey of 215 physicians, while responses were neutral for clinical laboratories and mixed to negative for managed care organizations [2].

Tenet Healthcare's financial flexibility is evident in its deleveraged balance sheet, with a net debt to EBITDA ratio of 3:1 as of March 31, 2025. This provides the company with financial flexibility for capital deployment and shareholder value creation. The company generated $642 million in free cash flow and had $3 billion in cash on hand as of the end of the first quarter [2].

Overall, Mizuho's upgrade signals confidence in Tenet Healthcare's ability to navigate market challenges and deliver strong earnings growth. Investors should closely monitor the company's upcoming Q2 earnings report to assess the validity of the upgraded price target.

References

[1] https://www.marketbeat.com/instant-alerts/tenet-healthcare-nysethc-sets-new-1-year-high-heres-what-happened-2025-07-15/
[2] https://www.gurufocus.com/news/2972120/mizuho-boosts-price-target-for-tenet-healthcare-thc-ahead-of-q2-earnings-thc-stock-news