Tenet Healthcare Corp

THC: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$878.00	Klyh	Klsnmkp

Tenet: Sale of Three South Carolina Hospitals Shows Continued Portfolio Optimization Efforts

Julie Utterback ,

Nov 20, 2023

No-moat Tenet Healthcare announced the sale of three hospitals in South Carolina to Novant Health, a local health system based in the Carolinas. Tenet expects to receive about $1.75 billion of aftertax proceeds from the transaction. We are encouraged to see Tenet’s continued focus on optimizing its hospital operations portfolio. We also believe Tenet’s decision to use the proceeds for debt retirement would strengthen its balance sheet mildly, which looks like a good move to us. Our $95 fair value estimate remains intact, and shares remain highly undervalued despite the 10% rally after this news.

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