Price Target Adjustment#
RBC Capital has lowered its price target for HCA Healthcare Inc (NYSE:HCA) from $593 to $534, while still maintaining an Outperform rating. This change comes after the company reported a weaker-than-expected first quarter, primarily due to lower patient volumes related to respiratory issues and disruptions caused by weather.
Stock Performance#
Following the news, HCA shares dropped 8.8% on Friday and have declined 9.6% over the past week, currently trading at $432.46. The Relative Strength Index (RSI) indicates that the stock may be oversold, suggesting it could be undervalued at this price level.
Market Dynamics#
RBC Capital pointed out some positive trends in March and noted that health insurance exchange dynamics are in line with expectations. Despite the lowered price target, the firm is keeping its earnings estimates unchanged for HCA Healthcare. The adjustment in the target multiple reflects a growing preference among clients for managed care companies, as well as concerns about hospital volume and patient mix following the weaker first quarter.
Recent Earnings Report#
In its first-quarter earnings report for 2026, HCA Healthcare showed mixed results. The company reported earnings per share (EPS) of $7.15, slightly above the forecast of $7.14. Revenue also exceeded expectations, reaching $19.11 billion, which is $200 million more than anticipated. However, Jefferies also adjusted its price target for HCA, lowering it from $590 to $525, citing adverse weather conditions that affected patient volumes, particularly due to ice storms in January that led to a 0.3% decrease in same-store admissions. These factors contribute to the ongoing operational challenges faced by HCA Healthcare, leading to cautious sentiment among investors.