
UHS Stock Forecast & Price Target
UHS Analyst Ratings
Bulls say
Universal Health Services has demonstrated significant financial improvement, with the Acute Care Hospital Services segment reporting a substantial increase in adjusted EBITDA margin by 190 basis points to 15.8%. The Behavioral Health Services segment also showed positive momentum, with revenue growth of 9.3%, indicating a rebound in patient volumes, as evidenced by an increase in adjusted patient days. Moreover, the company's positive outlook is bolstered by prospective programs awaiting CMS approval that could potentially add $75-80 million to revenue, alongside expectations for improved margins driven by easing labor costs and enhanced operational efficiencies.
Bears say
The negative outlook on Universal Health Services Inc. is primarily driven by anticipated volume and margin headwinds that are expected to impact fiscal year 2026 earnings, with estimates projected to be approximately 5% below expectations and an enterprise multiple reflecting trough levels observed in 2024 at around 5.5x. Additionally, the company's behavioral health segment is experiencing soft volume trends, exacerbated by a downward adjustment in long-term growth projections, with behavioral volumes expected to grow at only 2% through 2026. Furthermore, a significant decline in the contribution from DPP to EBITDA is projected for 2028, with a potential impact estimated between $420 million to $470 million over the following four years, amplifying the financial uncertainty for the firm moving forward.
This aggregate rating is based on analysts' research of Universal Health Services and is not a guaranteed prediction by Public.com or investment advice.
UHS Analyst Forecast & Price Prediction
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