Analyst Note| Julie Utterback, CFA |
Narrow-moat HCA Healthcare turned in solid third-quarter results even as macroeconomic challenges and Hurricane Ian pressured the firm. Considering the mounting uncertainty surrounding hospitals prior to a potential economic downturn, we have trimmed our near-term expectations through 2023. However, when also considering recently generated cash flows and that our longer-term assumptions are the key driver of value, we do not anticipate adjusting our $239 fair value estimate. HCA shares appear moderately undervalued to us.