Tenet Healthcare (THC) Price Target Boosted by Mizuho to $194 Ahead of Q2 Earnings.

Mizuho boosts Tenet Healthcare's (THC) price target from $184 to $194, maintaining an Outperform rating ahead of Q2 earnings. The firm notes strong hospital segment earnings prospects, but ongoing cost challenges for managed care companies. Analysts predict an average target price of $186.87, implying a 7.61% upside. Tenet Healthcare reported Q1 2025 net operating revenues of $5.2 billion and consolidated adjusted EBITDA of $1.163 billion, a 14% growth over 2024.

Mizuho has raised its price target for Tenet Healthcare (THC) from $184 to $194, maintaining an Outperform rating ahead of the company's Q2 earnings. The firm's positive outlook is driven by strong earnings prospects in the hospital segment, despite ongoing cost challenges for managed care companies. Analysts predict an average target price of $186.87, implying a 7.61% upside from the current price of $173.66 [2].

Tenet Healthcare reported Q1 2025 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 strong growth and operating discipline [2]. The company's hospital segment also showed robust performance, with adjusted EBITDA growing 12% to $707 million, driven by a 12% increase in total joint replacements. However, Tenet Healthcare has not updated its full-year 2025 guidance, citing the early stage of the year and potential uncertainties in healthcare policy [2].

Despite the positive earnings outlook, Tenet Healthcare faces ongoing challenges. The company's managed care segment continues to face cost pressures, which could impact future operations and financial performance. Additionally, the company's debt-to-equity ratio of 2.23 indicates a relatively high level of leverage, which could pose risks in the event of a downturn in the healthcare sector [1].

Investors should closely monitor Tenet Healthcare's Q2 earnings report and any updates to its full-year guidance. The company's strong Q1 performance suggests a promising start to the year, but ongoing challenges in the managed care segment and potential policy uncertainties could impact future results.

References:
[1] https://www.marketbeat.com/instant-alerts/tenet-healthcare-thc-to-release-quarterly-earnings-on-tuesday-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