Tenet Healthcare (THC) Benefiting from Capital Return Potential, Says Wells Fargo

Rizwan Siddiqui

Tue, February 24, 2026 at 3:23 PM GMT+9 2 min read

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Tenet Healthcare Corporation (NYSE:THC) is among the 15 Undervalued Momentum Stocks That Are Taking Off.

Following Tenet Healthcare Corporation’s (NYSE:THC) Q4 update, Wells Fargo lifted its target from $229 to $265 and maintained its Overweight rating on February 16. The firm noted that the investor reaction after the Q4 results was somewhat “surprising,” given that EBITDA had been largely pre-announced and guidance had come in broadly in line with expectations. The stock had rallied 17% after the company announced Q4 results on February 11.

According to Wells Fargo, the strong move was not due to incremental earnings revisions, but rather to improving investor conviction around capital return potential and Tenet’s alignment with prevailing market narratives, which “appear to be important drivers.”

Tenet Healthcare (THC) Benefiting from Capital Return Potential, Says Wells Fargo

Jirsak / shutterstock.com

In its Q4 update on February 11, the company reported revenue of $5.53 billion, 1% above the consensus of $5.47 billion. Adjusted EPS grew 37% year over year and came in at $4.70, which was ahead of the street expectation of $4.05. For FY 2026, the company guided for revenue of $21.5-$22.3 billion and adjusted EBITDA of $4.485-$4.785 billion. EPS for the year is expected to be in the range of $16.19-$18.47, which was again ahead of the consensus of $16.46 at the mid-point.

Several other analysts raised their price targets after the results. Among them, Morgan Stanley raised its price target to $260 from $247, RBC Capital to $277 from $253, and KeyBanc to $250 from $225.

After strong 57% returns in 2025, the stock has rallied another 16% so far in 2026. At $230, the stock currently trades close to its 52-week high of $235.8, as of February 20.

While we acknowledge the potential of THC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT:  12 Best Software Infrastructure Stocks to Buy According to Hedge Funds and Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy.

Disclosure: None. This article is originally published at Insider Monkey.

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