EHC - Healthcare services stocks makes debut at UBS with HCA and ACHC rated as new buys

UBS analyst Andrew Mok has initiated coverage on HCA Healthcare (NYSE:HCA) with a Buy rating and price target (PT) of $312. HCA is in a positive earnings revision cycle with strong demand, market share gains and free cash flow likely to drive EBITDA above consensus 2022 estimates, believes analyst. Recently, HCA inked deal to purchase five Utah hospitals from Steward Health Care. In addition, analyst Andrew Mok has initiated coverage of several other healthcare service providers. Acadia Healthcare (NASDAQ:ACHC) drew new Buy rating and PT of $81. The analyst has conviction in the company's ability to achieve 10% EBITDA growth target through 2025, driven by organic volume growth and $150M of balanced EBITDA contribution from growth initiatives. Encompass Health (NYSE:EHC) is also initiated at UBS with a Buy rating and PT of $98. The analyst says Encompass represents one of the most compelling investments in his coverage with a "clear

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Healthcare services stocks makes debut at UBS, with HCA and ACHC rated as new buys