BUZZ-Hospital shares tumble; analyst cuts UHS PT, citing uncertainty

Reuters
01 Mar
BUZZ-Hospital shares tumble; analyst cuts UHS PT, citing uncertainty

** Shares in Universal Health Services UHS.N tumbled 7.1% on Fri while HCA Healthcare HCA.N was off ~6%

** While Barclays raised its 2025 and 2026 estimate for EBITDA and kept its 'overweight' rating for UHS, it cut its price target 8% to $249 from $271 based on a 7.5x multiple versus prior 8.5x applied to its 2026 EBITDA estimate "reflecting greater policy uncertainty"

** UHS shares had risen 3.3% on Thurs, hitting a session high of $195.18, after reporting quarterly results late Weds

** UHS shares, gapping down on Fri, were last at $172.83 after earlier hitting $165.99, their lowest level since April 2024

** Median PT for the stock is $230 as per LSEG, which shows 20 analyst ratings: 2 'strong buy,' 7 'buy,' and 11 'hold' ratings

** YTD UHS shares down about 4% after rising 17.7% in 2024

** On Friday, UHS shares were the biggest decliner in the S&P 500 healthcare index .SPXHC.

** The SPXHC's second-biggest decliner was HCA, also a hospital operator, shares last at $301.72 after falling as low as $295

(Reporting By Sinéad Carew)

((sinead.carew@thomsonreuters.com; +13322191897;))

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