Tenet Healthcare: Guggenheim Maintains Buy, Raises PT to $188 from $180.

Tenet Healthcare: Guggenheim Maintains Buy, Raises PT to $188 from $180.

Guggenheim Securities has maintained its "Buy" rating on Tenet Healthcare Corporation (THC) shares, while raising its price target (PT) from $180 to $188. The investment bank's decision comes on the heels of Tenet Healthcare's strong second-quarter 2025 earnings report, which showcased robust financial performance and a positive outlook for the year ahead.

During the earnings call, Saumya Sutaria, Chairman & CEO, highlighted Tenet Healthcare's continued strong outperformance across all business segments. The company reported second-quarter 2025 net operating revenues of $5.3 billion and consolidated adjusted EBITDA of $1.121 billion, representing a 19% growth over 2024. Sutaria attributed the improved performance to efficient operations, same-store growth, and high patient acuity.

The United States Patient Infrastructure (USPI) segment generated $498 million in adjusted EBITDA, with 11% growth and same-facility revenues up 7.7%. Eight new centers were added, and the segment is expected to exceed its baseline M&A spend of $250 million in 2025. The hospital segment adjusted EBITDA grew by 25% to $623 million, with same-store hospital admissions up 1.6% and revenue per adjusted admission up 5.2%.

Tenet Healthcare also announced a $1.1 billion share repurchase of 7.2 million shares in the first half of 2025 and a $1.5 billion increase to the share repurchase program. The company raised its full-year 2025 adjusted EBITDA guidance to a range of $4.4 billion to $4.54 billion, representing an increase of $395 million at the midpoint from prior guidance.

Guggenheim Securities' analyst, who covers Tenet Healthcare, noted that the company's strong performance in the second quarter was driven by fundamental business strength, including same-store revenue growth, continued high patient acuity, favorable payer mix, and effective cost controls. The analyst also highlighted the company's proactive stance on capital deployment and its confident outlook for continued growth through the remainder of the year.

The investment bank's decision to raise its PT reflects its optimism about Tenet Healthcare's ability to execute its strategic initiatives and maintain its strong financial performance. Guggenheim Securities expects the company to continue delivering robust growth and improved profitability in the coming quarters.

References:
[1] https://seekingalpha.com/news/4470363-tenet-healthcare-raises-2025-ebitda-guidance-to-up-to-4_54b-as-high-acuity-and-uspi-growth