BofA Raises Universal Health Services (UHS) Price Target but Maintains Cautious Outlook

Universal Health Services, Inc. (NYSE:UHS) is included among the 13 Best Long-Term Dividend Stocks to Invest in Right Now.

On February 26, BofA raised its price recommendation on Universal Health Services, Inc. (NYSE:UHS) to $215 from $190. The firm reiterated an Underperform rating. It updated its estimates based on the company’s latest guidance and introduced its 2028 outlook. Even so, it kept its cautious stance. The analyst believes UHS faces greater exposure to potential policy changes, while its core operating performance remains under pressure.

During the Q4 2025 earnings call, CEO Marc Miller said the company ended 2025 with strong momentum. He pointed out that fourth-quarter revenue increased 9%, while adjusted EBITDA net of NCI rose 10%. Adjusted EPS grew even faster, climbing 20% compared with the same period in 2024. Miller credited this performance to careful cost management in the acute care segment. He also noted steady patient volume recovery in behavioral health and favorable pricing trends across both divisions. Share repurchases also played a meaningful role in supporting earnings growth.

He also discussed the company’s expansion efforts. UHS opened two new acute care hospitals during the year. At the same time, the company is preparing three inpatient expansion projects that will add 178 licensed beds across Florida, California, and Nevada. Miller added that UHS is developing a new 156-bed hospital in Palm Beach Gardens, Florida. The facility is expected to begin operations in the second quarter.

In behavioral health, the company continues to expand its footprint. Miller said UHS is advancing two new facilities that will add a combined 264 beds. One of these projects is being developed through a joint venture partnership with Jefferson Health System in Pennsylvania.

Universal Health Services, Inc. (NYSE:UHS) operates as a holding company through its subsidiaries. It owns and manages acute care hospitals, outpatient facilities, and behavioral healthcare facilities.

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