JPMorgan Lowers Ardent Health Price Target to $15 from $18, Maintains Neutral Rating.

JPMorgan has lowered its price target on Ardent Health to $15 from $18 and maintains a Neutral rating. The firm updated its model following the Q2 report.

JPMorgan (NYSE:JPM) has revised its price target for Ardent Health Partners Inc (NYSE:ARDT) to $15.00, down from $18.00, while maintaining a Neutral rating on the stock [1]. This adjustment comes after the company reported its second-quarter earnings, which exceeded estimates. The healthcare company benefited from the New Mexico Directed Payment Program (DPP) approval, which provided a $65 million EBITDA benefit in the quarter [1].

Despite the earnings beat, JPMorgan cited higher Medicaid supplemental taxes as a reason for the downward revision. The firm reduced its adjusted EBITDA forecast for 2025 to $593 million from $597 million and applied a 4.6x multiple to the revised 2027 adjusted EBITDA estimate, leading to the lower price target [1].

Ardent Health Partners reported earnings per share of $0.52 for the second quarter, surpassing the Zacks Consensus Estimate of $0.3 per share [2]. Revenue for the quarter reached $1.65 billion, up 11.9% year-over-year, demonstrating the company's robust financial health [2].

The stock has shown significant volatility, gaining 15.3% in the past week but losing 30.4% year-to-date. Investors should closely monitor management's commentary on the earnings call and future earnings expectations for a clearer picture of the stock's potential [2].

References:
[1] https://ca.investing.com/news/analyst-ratings/jpmorgan-lowers-ardent-health-partners-stock-price-target-to-15-on-medicaid-tax-impact-93CH-4149379
[2] https://www.nasdaq.com/articles/ardent-health-inc-ardt-q2-earnings-and-revenues-surpass-estimates