02:45 PM EDT, 05/20/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month target by $55 to $440, 15.7x our 2026 EPS estimate (up $0.06 to $28.00; we lift our 2025 view by $0.36 to $25.31), a premium to peers and to HCA's historical forward average. In support of HCA's multiple, we look to HCA's superior scale and margins vs. peers, attractive growth from new facilities in key markets, shareholder-friendly capital policy, and attractive near-term EPS growth potential, in our view. CMS recently released proposed Medicare IPPS rate updates for FY 26, featuring a net 2.4% annual increase for hospital operating base rates (FY 25 rates rose 2.9%), which we view as a neutral development. Though the situation remains in flux, we see less near-term risk of significant Medicaid cuts following recent remarks by President Donald Trump that may discourage Republican lawmakers from addressing this hot-button issue. While other policy risks loom, we see somewhat stronger 2025/2026 margins, FCF, and EPS with indications of a strong operational environment.