Tenet Healthcare: Takes from the call: more repo coming, raised deal outlook, raising PO

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Tenet Healthcare: Takes from the call: more repo coming, raised deal outlook, raising PO

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Tenet Healthcare

Takes from the call: more repo coming,

raised deal outlook, raising PO

Reiterate Rating: BUY | PO: 290.00 USD | Price: 233.16 USD

Color on guidance, raising PO on capital deployment 24 July 2026

Guidance raise was driven by fundamental strength in the businesses and continued Equity

growth in 2H. $100m of fundamental outperformance in 1H, and $60m of continuation

into 2H, implying some 2H conservatism despite 11% y/y 2H growth. Meanwhile, beyond

Key Changes

the impressive share repo in the quarter (6% of shares), THC now expects ASC deals will

be above $300m (vs $250m previously). THC made bullish comments about how (US$) Previous Current

attractive it views share repurchase at these valuations, given its expected growth over Price Obj. 265.00 290.00

the next several years. We are raising our PO to $290 (9.1x 2027E EBITDA-NCI vs $265,

8.5x 2027E prior) on strong performance and commitment to deploy capital. Reiterate KevinResearchFischbeck,Analyst CFA

Buy rating. BofAS

+1 646 855 5948

kevin.fischbeck@bofa.com

Elective surgeries are weakest where exchanges are down Joanna Gajuk

The company indicated that the surgical case backdrop was largely stable in the ASC Research Analyst

BofAS

side, as the weak volumes were more about historical pressures on the metrics from +1 646 855 3961

deemphasizing high volume/low acuity procedures and driving higher acuity volumes. On joanna.gajuk@bofa.com

the hospital side, elective surgeries were the source of pressure and THC noted that Joaquin Arriagada Martinez

Research Analyst

they were weakest in the states where the exchange enrollment declines were largest. BofAS

+1 646 855 1654