Cantor Fitzgerald maintains HCA stock with $405 target

Published 02/03/2025, 07:56 AM
Cantor Fitzgerald maintains HCA stock with $405 target

On Monday, Cantor Fitzgerald reaffirmed its positive stance on HCA Healthcare Inc (NYSE:HCA) shares, maintaining an Overweight rating and a price target of $405.00. The firm's analysis acknowledges an increase in the percentage of facilities with more than 20% of nurse positions unfilled. This rise is noted to be greater compared to HCA's industry peers. Despite this, the firm believes that the data from a single month is not sufficient to raise concerns. According to InvestingPro data, HCA maintains a strong financial health score of 3.18/5, rated as GREAT, suggesting robust operational management despite staffing challenges.

The analyst at Cantor Fitzgerald expressed confidence in HCA's projected EBITDA for 2025, suggesting potential for upside. With current EBITDA at $13.86 billion and revenue growth of 8.67% in the last twelve months, HCA shows strong operational performance. The management of HCA Healthcare has identified a moderating pressure on physician fee costs as a positive factor. Cantor Fitzgerald's data indicates a diverging trend between physician costs and nursing metrics, which supports the idea that HCA has room for improvement in the year 2025. InvestingPro analysis suggests the stock is currently trading below its Fair Value, presenting a potential opportunity for investors.

HCA Healthcare, a leading health care services company, has been navigating through a challenging labor market, particularly in nursing. The company's management has been strategizing to address these workforce challenges and improve operational efficiency.

The Overweight rating suggests that Cantor Fitzgerald expects HCA Healthcare's stock to outperform the average return of the stocks the firm covers over the next 12 to 18 months. The $405.00 price target represents the firm's projection of the stock's future price.

Investors and market watchers will be keeping an eye on HCA Healthcare's performance, especially in regards to how effectively it can manage labor costs and capitalize on the potential for improvement as indicated by Cantor Fitzgerald's analysis.

In other recent news, HCA Healthcare has seen numerous adjustments to its price target by several analyst firms, following the disclosure of its fourth-quarter results for 2024. Bernstein SocGen Group increased its price target for HCA Healthcare to $342, keeping a Market Perform rating, after the company reported an Adjusted EBITDA of $3,712 million and revenues of $18.3 billion. Mizuho (NYSE:MFG) Securities maintained its Outperform rating for the company, with a steady price target of $425, citing strong demand for its services and robust revenue growth.

TD Cowen, despite maintaining a Buy rating, reduced its price target from $440 to $377, following HCA Healthcare's financial report which demonstrated modest outperformance in revenue and EBITDA. RBC Capital Markets also reduced its price target to $384 but kept an Outperform rating, emphasizing the company's strong revenue growth.

Cantor Fitzgerald reiterated an Overweight rating on HCA shares, setting a price target of $405, expressing confidence in HCA's resilience and strong fundamentals. These recent developments underscore the evolving landscape for HCA Healthcare as it navigates the post-pandemic landscape and the ongoing demands of healthcare management.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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