Bringing their A-game at a critical juncture; Raising PT to $274: Tenet Healthcare Corporation | North America

Research evidence excerpt

Bringing their A-game at a critical juncture; Raising PT to $274: Tenet Healthcare Corporation | North America

Idea

July 27, 2026 04:00 AM GMT

Morgan Stanley & Co. LLCMTenet Healthcare Corporation | North America Craig Hettenbach

Equity Analyst

Bringing their A-game at a Craig.Hettenbach@morganstanley.comJialin Jin +1 212 761-6435

Research Associate

Jay.Jin@morganstanley.com +1 212 761-3913

critical juncture; Raising PT to Erin Wright

Erin.Wright1@morganstanley.com +1 212 761-6137

$274 Linda Bolduc

What’s Changed Linda.Bolduc@morganstanley.com +1 617 856-8009

Michelle Foley

Tenet Healthcare Corporation (THC.N) From To Research Associate

Price Target $254.00 $274.00 Michelle.Foley@morganstanley.com +1 212 761-4056

Derek Gross

Superior operational execution vs. peers is becoming difficult to ResearchDerek.Gross@morganstanley.comAssociate +1 212 761-2455

ignore, yet still not reflected in THC’s valuation multiple. The

Tenet Healthcare Corporation (THC.N, THC US)

fallout from exchanges in 2H, after a meaningful drag in Q2, is a

Healthcare Providers | United States of America

key debate. We're looking for cost reduction initiatives and AI Stock Rating Overweight

uptake to keep margins on track. Industry View In-Line

Price target $274.00

Shr price, close (Jul 24, 2026) $233.20

Reiterate Overweight on THC following another exceptional quarter. We're Mkt cap, curr (mm) $19,580

increasing our estimates on a combination of higher revenue and margins ( Exhibit 1 ) 52-Week Range $247.21-146.99

. Of note, Tenet’s updated 2026 EBITDA guidance implies 22.2% margin, which is 210 Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

bps above peer HCA’s 2026 guidance. Our PT moves up to $274 on the back of ModelWare EPS ($) 16.78 20.74 21.22 24.77

EPS ($)** 16.78 20.74 21.22 24.77