Community Health Systems plummets after trimming forecast, CEO departure

Community Health Systems

24/07/2025 10:49

** Shares of hospital operator Community Health Systems CYH.N plunge 25.5% to $2.89 premarket

** Co says its CEO Tim Hingtgen will retire late September, current CFO Kevin Hammons will serve as interim CEO

** Sees full-year adj. EBITDA in the range of $1.45 bln -$1.55 bln, trimming upper end of previous forecast of between $1.45 bln and 1.60 bln

** Brokerage Jefferies downgrades co to "hold" from "buy", reduces PT on stock to $3 from $4.25

** Says impact on co's FY26 EBITDA from expiration of some subsidies and cuts in Medicaid rates from U.S. President Donald Trump's tax and spending bill to reduce earnings

** Hingtgen's departure at time when industry is faced with Medicaid cuts adds uncertainty that could prompt stock valuation discount - Jefferies

** Average rating of 10 analysts is a "hold", median PT at $3.75 - LSEG

** Stock up nearly 30% YTD, till last close

 (Reporting by Purvi Agarwal in Bengaluru)

 ((Purvi.Agarwal@thomsonreuters.com;))