On Tuesday, TD Cowen adjusted its outlook on Universal Health Services (NYSE:UHS), raising the stock price target to $183 from $181 while keeping a Hold rating on the stock. The revision comes in response to the company's strong first-quarter results for 2024.
The firm's analyst cited the rationale behind the adjustment, noting an increase in the estimated EBITDA for the years 2024 and 2025. The new EBITDA projections are now set at $1.987 billion for 2024 and $2.075 billion for 2025, up from the previous estimates of $1.963 billion and $2.041 billion, respectively.
The analyst maintained the 8x 2025E EV/EBITDA-NCI target multiple, which led to the slight increase in the price target for Universal Health Services shares. This target multiple is a valuation metric used to assess the company's worth.
Universal Health Services' performance in the first quarter of 2024 has prompted this updated financial outlook. The company's results have shown a level of solidity that supports the revised EBITDA expectations.
The adjustment in the stock price target reflects the latest financial data and projections for Universal Health Services. The Hold rating indicates that the firm's outlook on the stock remains unchanged, suggesting that the company's current market performance aligns with the analyst's expectations.
InvestingPro Insights
Following TD Cowen's updated outlook on Universal Health Services, recent data and insights from InvestingPro further illuminate the company's financial health and market performance. Universal Health Services boasts a strong Piotroski Score of 9, indicating high financial health, and management's aggressive share buybacks underline a commitment to shareholder value. Moreover, the company is trading at a P/E ratio of 14.08, which is considered low relative to its near-term earnings growth.
InvestingPro Data underscores this perspective, revealing a robust revenue growth of 7.99% over the last twelve months as of Q1 2024, and a significant six-month price total return of 34.7%. These figures are complemented by a steady dividend yield, with the company maintaining payments for 22 consecutive years, showcasing its reliability for income-focused investors.
For readers looking to delve deeper into Universal Health Services' financial landscape, InvestingPro offers additional insights, including 6 analysts' upward revisions for the company's upcoming earnings period, a testament to its strong market position. To access these insights and more, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at Investing.com. With 9 more InvestingPro Tips available for UHS, investors have a valuable resource at their fingertips for informed decision-making.
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