Ardent Health Partners Inc (NYSE:ARDT) Sees Positive Financial Maneuvering, Stephens Maintains Overweight Rating and $24.00 Price Target
Stephens, a top financial services firm, has reaffirmed its Overweight rating and $24.00 price target for Ardent Health Partners Inc (NYSE:ARDT) after the company's recent financial moves. Ardent Health successfully amended its term loan credit agreement, resulting in a significant reduction in the interest rate spread. The new rate is now set at SOFR + 275 basis points, down from the previous SOFR + 325 basis points. This adjustment is expected to save Ardent Health approximately $5 million annually, boosting its free cash flow and potentially allowing for investments in high-growth areas like outpatient and Ambulatory Surgery Center (ASC) expansion.
The firm's updated model now reflects the lower interest rates, with the adjusted earnings per share (EPS) forecast for Ardent Health increasing by $0.05 in 2025 and $0.07 in 2026. Stephens' Overweight rating indicates that Ardent Health Partners' stock is considered more valuable than the average stock in the analyst's coverage universe, with a maintained $24.00 price target suggesting further potential growth.
In summary, Ardent Health's financial adjustments are expected to positively impact its long-term growth and profitability, making it an attractive investment opportunity.
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