THC Ticks Higher After Deutsche Bank Upgrade

Today's pop has THC nearing its recent five-year high

Assistant Editor
Dec 15, 2020 at 12:11 PM
facebook twitter linkedin

The shares of Tenet Healthcare Corporation (NYSE:THC) up 4% at $41.41 at last check, after Deutsche Bank upgraded the stock to "buy" from "hold," with an added price-target hike to $69 from $28. The firm still sees plenty of upside for the stock, despite its recent rally. 

On the charts, THC is nearing its Dec. 10 five-year high of $42.78, where it soared after news that the company is acquiring 45 surgery centers from Surgcenter Development. Currently, the equity is up an impressive 213% since its March lows, and 8.5% year-to-date. 

There is still plenty of room for upgrades amongst the brokerage bunch, with nine of the 12 analysts in coverage sporting a "hold" or worse rating on Tenet Healthcare stock. Meanwhile, the 12-month consensus price-target of $38.24 is a 7.4% discount to current levels. 

Though short interest has begun to unwind, there is still plenty more to act as a tailwind moving forward. The 6.70 million shares sold short account for 6.5% of the stock's available float, and would take over five days to cover at the security's average pace of trading.  

Lastly, now could be a good time to weigh in on THC's next move with options. The stock's Schaeffer's Volatility Index (SVI) of 62% stands higher than just 13% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment. 



If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial


Special Offers from Schaeffer's Trading Partners