RBC Capital maintains "Outperform" rating for CYH but lowers price target from $6.00 to $5.00, representing a 16.67% decrease. The updated price target reflects RBC Capital's reassessment of CYH's market positioning while still indicating a positive outlook for the company's performance. The average target price for Community Health Systems Inc is $3.72 with a high estimate of $5.00 and a low estimate of $3.00, implying an upside of 30.25% from the current price of $2.86.
RBC Capital has revised its price target for Community Health Systems Inc (CYH) from $6.00 to $5.00, while maintaining an "Outperform" rating. The adjustment reflects the firm's concerns over CYH's lower-than-expected adjusted admissions in the second quarter, which has led to a cautious outlook for the remainder of the year. This development adds to existing volume-related worries for the company [1].
Based on the one-year price targets offered by 8 analysts, the average target price for CYH is $3.72, with a high estimate of $5.00 and a low estimate of $3.00. This implies an average upside of 28.23% from the current price of $2.90 [1]. The consensus recommendation from 10 brokerage firms indicates a "Hold" status, with an average rating of 2.9 [1]. GuruFocus estimates the GF Value for CYH in one year to be $3.51, suggesting an upside of 21.03% from the current price of $2.9 [1].
CYH reported a 6.5% year-over-year increase in same-store net revenue for the second quarter but experienced a decline in adjusted admissions by 0.7%. Inpatient admissions increased by 0.3%, while same-store surgeries and emergency room visits declined by 2.5% and 1.9%, respectively. The company's adjusted EBITDA was $380 million, down from $387 million in the prior year period, and the EBITDA margin decreased to 12.1% from 12.3% [1].
RBC Capital's updated price target reflects the company's reassessment of CYH's market positioning while still indicating a positive outlook for its performance. The average target price for CYH is $3.72, with a high estimate of $5.00 and a low estimate of $3.00, implying an average upside of 30.25% from the current price of $2.86 [1].
References:
[1] https://www.gurufocus.com/news/3005142/community-health-cyh-price-target-reduced-by-rbc-capital-amid-volume-concerns-cyh-stock-news
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