Analyst says Tenet poised for major turnaround

Mon, 28 Apr 2008 06:59:57 -0400

This must be satisfying for Tenet execs to see: A major healthcare analyst has turned tail and upgraded the hospital company's rating dramatically, after slamming it less than a year ago and suggesting it would soon go out of business. Eight months ago, leading healthcare analyst Ken Weakly of Credit Suisse Securities predicted that Tenet's stock would drop to $2 per share from its then-status of $3.67 per share, and that within three years it would go bankrupt. He rated the stock as "under perform." Now, Weakly has done a complete turnaround, changing his rating to "outperform" and pushing his price forecast up to $8 per share from $6. With Tenet not only boosting patient volumes, but also seeing better pay from health plans, the company now has a "sustainable economic profile," Weakly wrote in a recent note to investors.

To learn more about Tenet's situation:
- read this article from The Dallas Morning News

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