Topically, HCA is a recent addition to the International Equities Portfolio and they reported earlier this month; we covered it here. We liked the result from the hospital operator, feeling it covered some of the concerns that have seen the stock fall ~30% in recent months. Moving forward, they guided to FY25 underlying earnings (EBITDA) of $US14.7bn at the midpoint, implying year-on-year growth of 5.9% and, more importantly, an improvement in margins. They also authorised an additional $US10bn to buy back stock, which is supportive and makes sense given the current depressed valuation. HCA is priced as a traditional healthcare stock, as opposed to the likes of PME, but its latest update increases our confidence that HCA is on course for an ongoing recovery.
- We continue to believe that HCA offers excellent value back around $US320. MM owns HCA in our International Equities Portfolio.
MM remains long & bullish HCA US, having bought it in January ~$311
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