Universal Health Services Price Target Rises to $215; Q4 EPS Jumps 20%
Bank of America raised Universal Health Services’ price target to $215 from $190 but kept an Underperform rating, citing policy exposure and pressured operations. UHS reported 9% revenue growth, 10% adjusted EBITDA and 20% adjusted EPS growth in Q4 2025, planning expansions adding 178 beds plus a 156-bed facility.
1. Price Target Raised with Cautious Outlook
Bank of America raised Universal Health Services' price target to $215 from $190 but retained an Underperform rating, highlighting potential policy changes and ongoing pressure on core operating performance.
2. Strong Q4 2025 Financial Performance
In Q4 2025, UHS achieved 9% revenue growth, a 10% increase in adjusted EBITDA net of noncontrolling interests and 20% adjusted EPS growth. The company credited cost management in acute care, patient volume recovery in behavioral health, favorable pricing trends and share repurchases for supporting earnings.
3. Acute Care and Behavioral Health Expansions
During 2025 UHS opened two new acute care hospitals and is preparing three inpatient expansion projects adding 178 licensed beds across Florida, California and Nevada. It is also developing a new 156-bed hospital in Palm Beach Gardens, Florida expected to begin operations in Q2, while advancing two behavioral health facilities adding 264 beds through a joint venture with Jefferson Health System in Pennsylvania.