Stock Markets
Universal Health Services stock target raised on strong quarter
![](https://letizo.com/wp-content/uploads/2024/07/universal-health-services-stock-target-raised-on-strongquarter_66a3e805a5e43.jpeg)
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.
Stock Markets
Five9 stock hits 52-week low at $28.74 amid market challenges
![](https://letizo.com/wp-content/uploads/2024/09/five9-stock-hits-52-week-low-at-28-74-amid-marketchallenges_66db470e2f7bf.jpeg)
In a turbulent market environment, Five9 (NASDAQ:) Inc’s stock has touched a 52-week low, reaching a price level of $28.74. This significant downturn reflects a broader trend for the cloud software company, which has seen its shares plummet by -58.79% over the past year. Investors are closely monitoring Five9’s performance as it navigates through a period of heightened volatility and shifting industry dynamics, which have contributed to the stock’s current valuation at this low point. The company’s efforts to rebound from this position will be under scrutiny in the coming quarters as market participants look for signs of a strategic turnaround or further indications of market pressures.
In other recent news, Five9 Inc . has achieved an annual revenue run rate exceeding $1 billion in Q2, a significant milestone despite lowering its annual revenue guidance by 3.8% due to customer budget constraints. The company’s adjusted EBITDA margin rose to 17% of revenue, contributing to a strong operating cash flow of $126 million. The company also confirmed plans to reduce its global workforce by approximately 7% by the end of 2024, a strategic move projected to cost between $12 million and $15 million.
Five9’s recent acquisition of Acqueon, a firm specializing in proactive outbound omnichannel customer engagement, aims to expand its AI offerings and bolster its growth. This move is in line with the company’s focus on managing expenses and improving profitability, with initiatives like FedRAMP and expansion into India anticipated to improve gross margins.
In their analysis, Piper Sandler maintained an Overweight rating for Five9, with a steady price target of $47.00, while Needham and BTIG both maintained a Buy rating with price targets of $48.00 and $45.00 respectively. These ratings reflect the firms’ confidence in Five9’s strategic positioning and potential for growth, despite the current challenges and workforce reduction.
InvestingPro Insights
Amid the current market conditions, Five9 Inc’s recent performance can be put into perspective with select data from InvestingPro. The company’s market capitalization stands at roughly $2.15 billion, indicating the size and scale of the business amidst its challenges. Despite the stock’s decline, analysts are showing a hint of optimism, with 20 analysts having revised their earnings estimates upwards for the upcoming period. This could signal a potential turnaround in sentiment or underlying business performance.
Importantly, Five9’s liquid assets are reported to surpass short-term obligations, suggesting that the company maintains a degree of financial flexibility to navigate its current difficulties. Furthermore, while the stock is trading near its 52-week low, it’s worth noting that the relative strength index (RSI) suggests the stock is in oversold territory, which can sometimes precede a rebound in share price. Investors looking for comprehensive analysis and additional InvestingPro Tips on Five9 can find more insights, including 14 other tips, at https://www.investing.com/pro/FIVN.
In terms of financial health, the company operates with a moderate level of debt and is expected to become profitable this year, according to analysts’ predictions. These elements may offer some solace to investors considering the stock’s substantial price fall over the last year. For those seeking a deeper dive into Five9’s valuation and future prospects, the InvestingPro platform provides a fair value estimate of $45.04, which is considerably higher than the current trading price, suggesting potential undervaluation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Stock Markets
TD Cowen maintains Buy on Terns Pharmaceuticals
![](https://letizo.com/wp-content/uploads/2024/09/td-cowen-maintains-buy-on-terns-pharmaceuticals_66db4713864f7.jpeg)
TD Cowen reiterated its Buy rating on shares of Terns Pharmaceuticals (NASDAQ:TERN), following the company’s investor call. The call was held to manage expectations for the upcoming Phase 1/2 CARDINAL study data for chronic myeloid leukemia (CML). The firm noted the challenges in measuring the efficacy endpoint (EP) due to disease progression and the absence of treatment switch guidelines, which makes major molecular response (MMR) a challenging efficacy endpoint for Phase 1/2 trials.
The interim Phase 1/2 data aims to evaluate descriptive efficacy signals, considering patients’ baseline BCR-ABL levels and treatment history. The analyst highlighted that the once-daily (QD) dosing and the lack of food effect could potentially enhance the quality of life for patients compared to other allosteric tyrosine kinase inhibitors (TKIs).
Terns Pharmaceuticals has been focusing on the development of improved treatment options for CML. The company’s approach to dosing, which does not require food intake, may offer a more convenient alternative for patients, potentially leading to better adherence and outcomes.
The topline data from the 6-month Phase 1/2 CARDINAL study is anticipated to be available in 2025. This data will provide further insights into the treatment’s efficacy and safety, which are critical factors in the ongoing development and potential approval process.
Investors and stakeholders in Terns Pharmaceuticals are expected to closely monitor the progress of the CARDINAL study, as it could have a significant impact on the company’s future prospects and position in the CML treatment landscape.
In other recent news, Terns Pharmaceuticals has experienced significant developments. The biopharmaceutical company reported robust earnings and revenue results, with Mizuho Securities maintaining an Outperform rating on Terns shares, citing strong enthusiasm for the company’s drug, TERN-701, a potential treatment for chronic myeloid leukemia.
The firm expects the first interim Phase 1 CARDINAL study data for TERN-701 in December.
Terns also announced the appointment of Elona Kogan as its new chief legal officer, a move that underscores the company’s strategic development and pipeline advancement.
The company also secured an extension of its office lease in Foster City, California, through 2027, reflecting Terns Pharmaceuticals’ operational stability and long-term planning.
In terms of clinical trials, Terns has made progress in its ongoing Phase 1 study of TERN-701, with interim findings suggesting the drug can be administered once daily with or without food.
This development, coupled with the forthcoming Phase 1 data for another of Terns’ drugs, TERN-601—an oral GLP-1 receptor agonist for obesity—expected next month, underscores the company’s commitment to innovative therapies.
These recent developments, from financial performance to executive appointments and clinical trials, highlight Terns Pharmaceuticals’ ongoing efforts to advance its strategic objectives and deliver on its mission. The company’s activities are closely watched by investors and industry analysts, including those from Mizuho Securities, who continue to support the company’s potential.
InvestingPro Insights
As Terns Pharmaceuticals (NASDAQ:TERN) navigates the complexities of its Phase 1/2 CARDINAL study, investors are keeping a keen eye on the company’s financial health and stock performance. According to InvestingPro, Terns holds more cash than debt, which is a positive signal for financial stability. Additionally, with five analysts revising their earnings upwards for the upcoming period, there is a sense of optimism about the company’s potential performance.
However, it’s important to note that Terns is not currently profitable and has been quickly burning through cash, which may raise concerns about long-term sustainability. The company’s P/E Ratio stands at -5.71, reflecting these profitability challenges. Despite these hurdles, Terns has managed a 1 Year Price Total Return of 45.42%, indicating some investor confidence in the company’s growth prospects. The anticipated fair value from analysts stands at 15 USD, while the InvestingPro Fair Value is calculated at 5.8 USD, highlighting a divergence in valuation perspectives.
For those looking for more in-depth analysis, additional InvestingPro Tips on Terns Pharmaceuticals can be found at https://www.investing.com/pro/TERN, offering a comprehensive look at the company’s financial details and stock performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Stock Markets
Macron discussed support for Ukraine and Gaza ceasefire with Germany’s Scholz
![](https://letizo.com/wp-content/uploads/2024/09/macron-discussed-support-for-ukraine-and-gaza-ceasefire-withgermanys-scholz_66db4718bf910.jpeg)
PARIS (Reuters) – French President Emmanuel Macron discussed the importance of maintaining support for Ukraine and the need for a ceasefire in Gaza during talks on Friday with German Chancellor Olaf Scholz, said the French presidency.
Regarding Ukraine, the two leaders expressed their determination to support the country “for as long and as intensively as necessary” in its war against Russia, the Elysee said.
- Forex2 years ago
Forex Today: the dollar is gaining strength amid gloomy sentiment at the start of the Fed’s week
- Forex2 years ago
How is the Australian dollar doing today?
- Forex2 years ago
Dollar to pound sterling exchange rate today: Pound plummeted to its lowest since 1985
- Forex2 years ago
Unbiased review of Pocket Option broker
- Cryptocurrency2 years ago
What happened in the crypto market – current events today
- World2 years ago
Why are modern video games an art form?
- Stock Markets2 years ago
Morgan Stanley: bear market rally to continue
- Commodities2 years ago
Copper continues to fall in price on expectations of lower demand in China