Zacks Investment Research upgraded shares of Tenet Healthcare Corp. (THC) from NEUTRAL to OUTPERFORM on January 22, 2013, with a target price of $46.00.
We are upgrading our recommendation on Tenet Healthcare to Outperform, based on increasing operating revenues and growth through acquisitions. Moreover, the recent strategic plans are expected to generate growth, enhance capital structure and boost shareholder value. The company's third-quarter earnings fell short of the Zacks Consensus Estimate but outperformed the year-ago earnings. Growth was driven by higher outpatient visits and surgeries along with cost containment initiatives. Adjusted admissions, which grew 1.4%, marked the 8th consecutive quarter increase and the 18th of the last 21 quarters. However, rising expenses and provision for doubtful debt remain matters of concern. Overall, we believe that strong organic and inorganic growth can help boost the future earnings outlook.
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