Goldman Sachs to raise rating tenet Rose 20%

"MarketWatch New York May 19," Beijing time May 19 night, the hospital operator Tenet Healthcare (THC) shares rose more than 20%.　　Earlier, Goldman Sachs Group announced that the Tenet stock rating from "neutral" to "buy", the stock is expected to increase the price of one-fold.　　As of Tuesday 11:35 (Beijing time Tuesday 23:35 P.M.), Tenet's shares on the New York Stock Exchange rose 42 cents to $2.67, or 19%.　　Shelly Gnall, Goldman Sachs analyst, points out that the reasons for the upgrade include favourable urban market conditions, continued improvement in profitability and the elimination of expiring debt as credit markets normalize tenet. Goldman Sachs announced that it would raise its tenet target share price from $1 to $5. Tenet's shares still have room to rise, says Neil.　　In a report to clients, Neil writes that shares and bonds in the hospital sector have risen about 120% per cent since the beginning of March this year, thanks to the excellent performance of the first quarter and the market's optimism about the long-term prospects for health care reform.　　The analyst reckons that city hospital operators such as Tenet will outperform similar stocks, and we expect this divergence to continue, which will give Tenet a chance to capture market share. Neil further writes: "City hospital operators have greater flexibility in switching to non-emergency cases, and the area will become even more important as the unemployment rate declines in the second half of the year and the number of uninsured patients and the out-of-pocket income of the medical sector will increase."　　"Nevertheless, Goldman Sachs points out that Tenet still faces some risks, including the impact of slowing economic growth on profits and the decline in hospital subsidies." This morning Goldman also announced a downgrade of the shares of LifePoint hospitals, another hospital operator, to "neutral".