BofA Cautious on Hospitals, Forecasts 2-4% EBITDA Headwind Over Next 5 Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 07 2026
0mins
Source: Benzinga
- Dismal Industry Outlook: BofA Securities forecasts a 2-4% annual EBITDA headwind for hospitals over the next five years due to cuts from the Reconciliation Bill and the expiration of enhanced exchange subsidies, negatively impacting revenue and margins.
- Increased Policy Risks: Analysts note that while some new state-directed payment programs may be approved, future policy changes could further suppress hospital profitability, particularly concerning Medicaid and exchange policies.
- Intensified Market Competition: With healthcare demand stabilizing, core demand for hospital services is expected to grow below the midpoint of long-term ranges in 2026, as policy changes may lead to lower-than-expected volume growth for hospitals.
- Shift in Investment Preferences: BofA favors post-acute care companies like Encompass Health due to their minimal exposure to upcoming cuts, anticipating higher visibility growth, which reflects a positive outlook on favorable industry dynamics.
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Analyst Views on ARDT
Wall Street analysts forecast ARDT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARDT is 13.73 USD with a low forecast of 10.00 USD and a high forecast of 17.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
8 Buy
4 Hold
1 Sell
Moderate Buy
Current: 8.250
Low
10.00
Averages
13.73
High
17.00
Current: 8.250
Low
10.00
Averages
13.73
High
17.00
About ARDT
Ardent Health, Inc., formerly Ardent Health Partners, Inc., is a provider of healthcare in mid-sized urban communities across the United States. Through its subsidiaries, the Company delivers care through a system of 30 acute care hospitals and approximately 280 sites of care with over 1,800 affiliated providers across six states. It provides both general and specialty services, including internal medicine, general surgery, cardiology, oncology, orthopedics, women’s services, neurology, urology, and emergency services, within inpatient and ambulatory care settings. In addition to its 30 acute care hospitals, it operates a network of ambulatory facilities and telehealth services, including primary care and specialty care clinics, ambulatory surgery centers (ASCs), urgent care centers, free-standing emergency departments, and diagnostic imaging centers. It operates a consumer-centric healthcare platform focused on creating relationships with its patients across multiple care settings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ardent Health Faces Class Action Lawsuit Over Securities Fraud
- Class Action Notification: Levi & Korsinsky LLP has informed investors of Ardent Health, Inc. regarding a class action lawsuit due to alleged securities fraud occurring between July 18, 2024, and November 12, 2025.
- False Financial Reporting: The complaint alleges that Ardent Health misrepresented its accounts receivable framework, leading to materially misleading financial statements that adversely affected investor decisions.
- Insurance Deficiency Issues: Ardent Health failed to maintain adequate professional malpractice liability insurance to cover claims arising from operations, particularly in New Mexico where medical malpractice claims have been increasing.
- Investor Rights Protection: Affected investors have until March 9, 2026, to request lead plaintiff status, with no out-of-pocket costs required to participate in the recovery process, ensuring investor rights are protected.
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Ardent Health Faces Class Action Lawsuit
- Lawsuit Background: Bragar Eagel & Squire has filed a class action lawsuit against Ardent Health on behalf of investors who purchased securities between July 18, 2024, and November 12, 2025, alleging the company failed to timely recognize uncollectible accounts, leading to investor losses.
- Financial Impact: Ardent Health reported a $43 million revenue decrease in Q3 2025 due to revised assessments of accounts receivable collectability, causing its stock price to plummet nearly 34% from $14.05 to $9.30 per share on November 12, 2025, significantly impacting the company's market capitalization.
- Insurance Deficiency: The complaint highlights that Ardent Health did not maintain sufficient professional malpractice liability insurance, potentially exposing the company to higher legal risks and liabilities, further exacerbating investor concerns regarding its financial health.
- Investor Action: Investors must apply by March 9, 2026, to be appointed as lead plaintiffs in the lawsuit, reflecting a strong emphasis on corporate governance and financial transparency issues.
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