Univeral Health Services falls after BofA downgrades to "underperform" on Medicaid cuts
Brokerage BofA Global Research downgrades hospital operator Universal Health Services UHS.N to "underperform" from "neutral", trims PT to $185 from $215
UHS shares fall 3.1% to $171.41
New PT still implies a 9.2% upside to the stock's last close
The recently passed Reconciliation Bill includes cuts to Medicaid and ACA exchanges likely to reduce patient volumes and increase unpaid bills (bad debt) for hospitals, says BofA
The brokerage believes UHS is more vulnerable to these changes than its peers, especially due to its high reliance on State Directed Payments (SDPs) and enhanced subsidies that are set to expire
Brokerage says that the bill reverses recent gains from expanded coverage and higher Medicaid payments
BofA is lowering its 2026 and 2027 estimates for UHS due to lower patient volumes and higher bad debt and says future growth is weak due to funding cuts
As of last close, UHS stock 5.6% YTD
Related Articles
How Bitcoin Miners Are Scaling Revenue Through AI Data Center Integration
Discover how Bitcoin miners like Core Scientific and IREN are scaling revenue by pivoting to AI data centers. Explore 2026 hashprice trends, ASIC-to-GPU retrofitting, and the "hashrate-to-HPC" revolution.
Nikkei Index Heading Toward 60,000? Why Is Global Capital Betting on Sanae Takaichi? Will Japan’s Stock Market Continue to Hit New Highs in 2026?
TradingKey - In February 2026, the Tokyo stock market once again became the epicenter of global financial markets. Following a landslide victory by the Sanae Takaichi-led Liberal Democratic Party in the Lower House elections, the Nikkei 225 Index hit consecutive record highs within just a few days, targeting the 60,000-point milestone.
Stock Market Crash 2026: What Fed Signals and Economic Data Mean for Investors
TradingKey - The possibility of a stock market crash occurring in 2026 is becoming increasingly likely as investor sentiment continues to decline.
New Fed Chair Warsh Takes Office: Major Shift in Monetary Policy? US Dollar Short-Term Rebound, 2026 Investment Strategy Analysis
TradingKey - At the start of 2026, global financial markets witnessed a major leadership change as U.S. President Trump officially nominated Kevin Warsh as the next Federal Reserve Chair. Pending Senate confirmation, he will succeed Jerome Powell this May to lead the world’s most influential central bank.
