Research Alert: CFRA Maintains Buy Rating On Shares Of Universal Health Services

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month price target to $200 from $243, reflecting an 8.7x multiple of our 2026 EPS estimate, below peer multiples and a discount to UHS's five-year historical forward average of 11.9x. We lower our 2026 EPS forecast to $22.95 from $23.39 and cut our 2027 view to $25.48 from $25.67. Q1 inpatient volumes were flat on a same-facility basis, with seasonal headwinds from unfavorable winter weather and a milder flu/respiratory illness period. The recent expiration of ACA EPTCs also posed challenges, as UHS estimates a near 5% drop in ACA adjusted admissions relative to Q1 2025. UHS maintained its prior forecast of a 25%-30% decline in ACA exchange volumes during the full year, which represented around 6% of the acute care business adjusted admissions in 2025 and under 5% of the acute care segment revenues. UHS anticipates a $75M pre-tax earnings hit in 2026 from these developments, unchanged from prior guidance.