04:00 PM EDT, 04/30/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target $25 to $118, 13.3x our 2024 EPS view, which we increase by $2.56 to $8.89 on THC's significant guidance raise. Our target reflects a premium to THC's recent historical average to reflect significant debt reduction after the recent sale of nine hospitals (at attractive valuations, in our opinion) across California and South Carolina. We raise our 2025 estimate by $0.25 to $7.19. THC reported Q1 adj-EPS of $3.22 vs. $1.42, $1.78 above consensus forecasts. Adj-EBITDA margin of 19.1% rose from 16.6% in the prior-year quarter, and THC's new 2024 guidance midpoint of 17.8% is 5.6% above the prior 16.85% target and our prior expectation of 16.7%. Hospital segment same-hospital adjusted admissions rose 1.8% Y/Y, and contract labor as a percentage of salary, wages, and benefits fell to 2.9% from ~6% in the prior-year quarter. Ambulatory segment same-facility system-wide surgical cases fell 0.4% Y/Y, but a more favorable surgical case mix supported 6.8% Y/Y growth in net revenue per case.