Stock Markets
Universal Health Services stock target raised on strong quarter
On Friday, an analyst from TD Cowen adjusted the financial outlook for Universal Health Services (NYSE:), raising the stock price target to $220 from the previous figure of $183. The firm maintained a Hold rating on the stock despite the increase in the price target.
Universal Health Services reported a robust quarter, with notable increases in its Acute EBITDA by 3% and its Psych segment by 18% over the consensus. Moreover, the company’s revenue guidance experienced an upward revision of 1%, while the EBITDA guidance saw a significant 11% increase.
The analyst highlighted the potential for new Service Delivery Programs (SDP) in Tennessee and Washington D.C., which could contribute more than $120 million annually to the company’s revenue, should they receive approval. These new programs are a key driver behind the improved financial forecast for Universal Health Services.
Incorporating these positive developments, TD Cowen is now incorporating an approximate 10 basis points of margin improvement into its financial model for the company through to the year 2025. This adjustment is a reflection of the strong performance and promising prospects identified by the analyst.
The new price target of $220 is set at approximately 8.0 times the TD Cowen’s 2025 adjusted EBITDA estimate for Universal Health Services. This valuation aligns with the company’s 10-year average, suggesting a consistent approach to the stock’s projected value.
In other recent news, Universal Health Services (UHS) has been the subject of various analyst upgrades and price target revisions. BofA Securities raised its price target for UHS shares to $235, maintaining a Buy rating, following a positive guidance update from the company.
The firm noted potential additional supplemental payments pending approval in Tennessee and the District of Columbia, which could significantly boost the company’s financial outlook.
On a similar note, Cantor Fitzgerald upgraded UHS’s stock from Underweight to Neutral, lifting its price target to $219, citing optimism about the company’s acute care segment. Baird also upgraded UHS’s stock from Neutral to Outperform, raising its price target to $236, reflecting the company’s potential for significant earnings growth.
UBS upgraded UHS’s stock from Neutral to Buy, raising the price target to $226. The upgrade reflects a positive outlook on the company’s earnings potential, particularly in its behavioral health services. UHS also declared a cash dividend of $0.20 per share, scheduled for disbursement in June.
Conversely, UBS downgraded Nestle SA (SIX:)’s stock from Buy to Neutral due to persistent pricing pressures and missed organic sales growth targets. The firm set a new price target of CHF95.00, a decrease from the previous CHF117.00, following Nestle’s latest quarterly report. These are among the recent developments that provide investors with updated perspectives on the financial performance and growth potential of these companies.
InvestingPro Insights
Following the upbeat financial outlook from TD Cowen for Universal Health Services (NYSE:UHS), real-time data from InvestingPro further underscores the company’s robust financial health and market position. With a market capitalization of $14.03 billion and a P/E ratio standing at 14.96, UHS is trading at a low P/E ratio relative to near-term earnings growth. This is a key indicator of the stock’s potential undervaluation, especially considering the company’s strong revenue growth of 8.83% over the last twelve months as of Q2 2024.
InvestingPro Tips highlight UHS’s aggressive share buyback strategy and a perfect Piotroski Score of 9, demonstrating strong financial health and prudent management decisions. Additionally, the stock has seen a significant return over the last week with a 13.37% price total return, which may catch the eye of investors looking for short-term gains. For those considering a deeper analysis, InvestingPro offers additional tips on UHS, providing a comprehensive understanding of the stock’s outlook.
Investors interested in further insights can leverage the exclusive InvestingPro platform and apply the coupon code PRONEWS24 to receive up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With additional tips available on InvestingPro, including the latest analyst revisions and stock volatility data, investors can make more informed decisions backed by comprehensive and real-time market data.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
(Reuters) -Private equity firm Insight Partners is on the brink of closing a new $10 billion-plus fund, roughly half the amount originally targeted, the Financial Times reported on Sunday, citing five people with knowledge of its plans.
Insight will not formally close its 13th fund until early next year, the report said, adding that the final figure may be closer to $12 billion.
Insight Partners declined to comment on the report.
The report said Insight is using a private equity-style structure to sell more than $1 billion worth of stakes in start-ups and to free up cash to return to investors.
One of the start-ups is Israeli cybersecurity firm Wiz, which had called off a $23 billion deal with Google parent Alphabet (NASDAQ:) in July, the report said.
New York-based Insight raised $20 billion for its 12th flagship fund in 2022, aiming to ramp up investments in software and technology companies.
JERUSALEM (Reuters) -Prime Minister Benjamin Netanyahu said Israel would inflict a “heavy price” on the Iran-aligned Houthis who control northern Yemen, after they reached central Israel with a missile on Sunday for the first time.
Houthi military spokesman Yahya Sarea said the group struck with a new hypersonic ballistic missile that travelled 2,040 km (1270 miles) in just 11 1/2 minutes.
After initially saying the missile had fallen in an open area, Israel’s military later said it had probably fragmented in the air, and that pieces of interceptors had landed in fields and near a railway station. Nobody was reported hurt.
Air raid sirens had sounded in Tel Aviv and across central Israel moments before the impact at around 6:35 a.m. local time (0335 GMT), sending residents running for shelter. Loud booms were heard.
Reuters saw smoke billowing in an open field in central Israel.
At a weekly cabinet meeting, Netanyahu said the Houthis should have known that Israel would exact a “heavy price” for attacks on Israel.
“Whoever needs a reminder of that is invited to visit the Hodeida port,” Netanyahu said, referring to an Israeli retaliatory air strike against Yemen in July for a Houthi drone that hit Tel Aviv.
The Houthis have fired missiles and drones at Israel repeatedly in what they say is solidarity with the Palestinians, since the Gaza war began with a Hamas attack on Israel in October.
The drone that hit Tel Aviv for the first time in July killed a man and wounded four people. Israeli air strikes in response on Houthi military targets near the port of Hodeidah killed six and wounded 80.
Previously, Houthi missiles have not penetrated deep into Israeli air space, with the only one reported to have hit Israeli territory falling in an open area near the Red Sea port of Eilat in March.
Israel should expect more strikes in the future “as we approach the first anniversary of the Oct. 7 operation, including responding to its aggression on the city of Hodeidah,” Sarea said.
The deputy head of the Houthi’s media office, Nasruddin Amer, said in a post on X on Sunday that the missile had reached Israel after “20 missiles failed to intercept” it, describing it as the “beginning”.
The Israeli military also said that 40 projectiles were fired towards Israel from Lebanon on Sunday and were either intercepted or landed in open areas.
“No injuries were reported,” the military said.
PARIS (Reuters) – Eight people have died trying to cross the Channel from France to England, French authorities said on Sunday, confirming earlier media reports.
This latest incident follows the deaths of 12 people earlier this month when their boat capsized in the Channel on its way to Britain and highlights the pressure on the British and French governments to find ways to tackle the boat crossings.
Jacques Billant, the Prefect of the Pas-de-Calais region, said that rescue crews were alerted that a boat with 59 people onboard was in difficulty in waters off the coast of Ambleteuse in the Pas-de-Calais area.
“A new drama took place around one in the morning and we deplore the death of eight people,” he told a news conference, adding that the other 51 onboard were now in the care of rescue and medical crews.
The dead were men from Eritrea, Sudan, Syria, Egypt, Iran and Afghanistan, he added.
The Channel is one of the world’s busiest shipping lanes and currents are strong, which makes crossing on small boats dangerous.
The latest incident brings to 46 the number of people who have died trying to cross the Channel from France since the start of the year, Billant said.
On September 14 alone there were eight attempts to cross the Channel from France and some 200 migrants were rescued, he said.
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