Universal Health Services rises after TD Cowen upgrades to 'buy', lifts PT

Universal Health Services

16/10/2024 19:30

** Shares of hospital operator Universal Health Services
 UHS.N  rise 5.3% to $237.30
    ** Brokerage TD Cowen upgrades UHS to "buy" from "hold" and
raises PT to $283 from $220
    ** "We believe investors are generally unaware of the
pending state-directed payment (SDP) enhancements in Texas,
Florida and California" - TD Cowen
    ** Brokerage sees SDP enhancements in Tennessee and the
District of Columbia, and Texas to finalize before 2024
year-end. It anticipates SDP enhancements in both Florida and
California before the end of 2025
    ** TD Cowen sees Wall Street estimates for UHS's EBITDA to
go up 15%-20% in the next 3-12 months, and 30%-40% in the
long-term if all states were to increase SDP programs
    ** SDPs are a tool for states to increase access to health
coverage and support healthcare
    ** YTD, stock up 55.6%

 (Reporting by Puyaan Singh)
 ((Puyaan.Singh@thomsonreuters.com;))