Morgan Stanley Sees 2014 Guidance for Tenet Healthcare as Full of Puts and Takes

In a report published Tuesday, Morgan Stanley analyst Andrew Schenker reiterated an Equal-Weight rating on Tenet Healthcare (NYSE: THC).

In the report, Morgan Stanley noted, “THC issued FY14 Adj. EBITDA guidance of $1.8B to $1.9B including reform benefit of $50M to $100M. Guidance compares with MS est. and consensus of $1.94B and 1.96B, respectively. THC's forecast assumes pro-forma admissions growth of -2% to flat adj. admissions growth of -1% to +1% and VHS synergies of $50M-$100M. Separately, the company anticipates 1Q14 adj. EBITDA of $350M-$400M including $10M in EHR, this compares with MS and street at $434M and $447M, respectively.”

Tenet Healthcare closed on Monday at $48.33.