According to Morgan Stanley, investors now have the opportunity to buy now at Tenet Healthcare as the company evolves. Analyst Craig Hettenbach has launched healthcare services stocks with an overweight rating. Hettenbach’s $165 price target means a 26.2% increase since the end of Tuesday. Despite the political uncertainty of the stock, Hettenbach said the company should be boosted by its transition to outpatient care and low-cost services. “The key business models and balance sheet transformations have not yet been captured in multiples of THC,” Hettenbach wrote to his client in a memo on Wednesday. “The risk of reducing government spending is likely to remain within the close period of time, providing patient investors with something that should plunge into what should emerge as a cleaner story and a durable business.” Specifically, according to analysts, Tenet is expanding and leveraging its USPI business with outpatient and surgical offerings. It’s been partially done with the acquisition of Tuck-In, he said. In addition to that, Hettenbach said Tenet is a leader within the outpatient surgery centre space and is “the largest provider in the fragmented market.” So he believes that the Texas-based company can see Tailwinds. Elsewhere, Hettenbach said Tenet could gain a pace of stock buybacks as free cash flow improves and balance sheets get stronger. Stocks rose more than 3% in 2025, bringing backing this year the downward trend seen in a wide range of markets. On this call, Hettenbach joins the Wall Street majority with a comparable rating of shopping per LSEG. Get tickets for Pro Live Join us on the New York Stock Exchange! An uncertain market? Earn Edge with CNBC Pro Live, the first exclusive event on the historic New York Stock Exchange. Access to expert insights is paramount in today’s dynamic financial situation. As a CNBC Pro subscriber, we recommend attending the first exclusive and in-person CNBC Pro live event held at the iconic NYSE on Thursday, June 12th. You will also get the opportunity to network with CNBC experts, talent and other pro subscribers during exciting cocktail hours on the legendary trading floor. Tickets are limited!
Buy this health care stock as it undergoes a ‘transformation’, Morgan Stanley says
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