Royal Bank Of Canada Issues Pessimistic Forecast for Universal Health Services (NYSE:UHS) Stock Price

Key Points

• Royal Bank of Canada cut its price target on Universal Health Services from $216 to $190 and kept a "sector perform" rating, implying roughly a 13.6% upside from the current share price.
• Multiple analysts have trimmed targets recently; the consensus is a Hold with an average price target of $223.20 after several downgrades.
• UHS beat Q1 estimates (EPS $5.62 vs $5.36; revenue $4.50B vs $4.39B) and guided FY2026 EPS to $22.64–24.52, yet the stock trades near $167 with a low P/E (~6.9) and both the 50- and 200-day moving averages above the current price.

Universal Health Services (NYSE:UHS - Get Free Report) had its price target lowered by equities research analysts at Royal Bank Of Canada from $216.00 to $190.00 in a report issued on Wednesday, MarketBeat reports. The firm currently has a "sector perform" rating on the health services provider's stock. Royal Bank Of Canada's price target suggests a potential upside of 13.58% from the company's current price.

Several other equities analysts have also issued reports on UHS. TD Cowen decreased their target price on Universal Health Services from $251.00 to $245.00 and set a "buy" rating for the company in a research report on Wednesday, January 7th. Robert W. Baird decreased their target price on Universal Health Services from $241.00 to $204.00 and set a "neutral" rating for the company in a research report on Wednesday. Weiss Ratings lowered Universal Health Services from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, April 17th. Wells Fargo & Company decreased their target price on Universal Health Services from $235.00 to $212.00 and set an "equal weight" rating for the company in a research report on Monday, March 2nd. Finally, Cantor Fitzgerald decreased their target price on Universal Health Services from $250.00 to $229.00 and set a "neutral" rating for the company in a research report on Friday, February 27th. Five equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Universal Health Services currently has a consensus rating of "Hold" and an average price target of $223.20.

Universal Health Services Trading Up 2.9%

Shares of Universal Health Services stock traded up $4.74 during trading on Wednesday, hitting $167.28. 117,962 shares of the company were exchanged, compared to its average volume of 742,023. The firm has a market capitalization of $10.22 billion, a P/E ratio of 6.94, a price-to-earnings-growth ratio of 0.82 and a beta of 1.29. Universal Health Services has a 1-year low of $152.33 and a 1-year high of $246.32. The firm's fifty day moving average price is $191.57 and its 200 day moving average price is $209.50. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.05 and a quick ratio of 0.98.

Universal Health Services (NYSE:UHS - Get Free Report) last posted its earnings results on Monday, April 27th. The health services provider reported $5.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.36 by $0.26. The company had revenue of $4.50 billion during the quarter, compared to analyst estimates of $4.39 billion. Universal Health Services had a return on equity of 19.78% and a net margin of 8.56%.The company's revenue for the quarter was up 9.6% compared to the same quarter last year. During the same period in the previous year, the company earned $4.84 EPS. Universal Health Services has set its FY 2026 guidance at 22.640-24.520 EPS. As a group, sell-side analysts expect that Universal Health Services will post 23.4 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Universal Health Services

Several large investors have recently made changes to their positions in UHS. Pzena Investment Management LLC boosted its holdings in shares of Universal Health Services by 310.2% in the 3rd quarter. Pzena Investment Management LLC now owns 1,607,029 shares of the health services provider's stock valued at $328,541,000 after buying an additional 1,215,286 shares during the last quarter. Norges Bank acquired a new stake in shares of Universal Health Services in the 4th quarter valued at approximately $199,334,000. Nomura Holdings Inc. boosted its holdings in shares of Universal Health Services by 100.6% in the 2nd quarter. Nomura Holdings Inc. now owns 2,560 shares of the health services provider's stock valued at $464,000 after buying an additional 426,211 shares during the last quarter. Morgan Stanley boosted its holdings in shares of Universal Health Services by 59.5% in the 4th quarter. Morgan Stanley now owns 871,377 shares of the health services provider's stock valued at $189,978,000 after buying an additional 325,162 shares during the last quarter. Finally, Holocene Advisors LP boosted its holdings in shares of Universal Health Services by 262.4% in the 3rd quarter. Holocene Advisors LP now owns 358,885 shares of the health services provider's stock valued at $73,370,000 after buying an additional 259,861 shares during the last quarter. Institutional investors and hedge funds own 86.05% of the company's stock.

About Universal Health Services

Universal Health Services, Inc NYSE: UHS is one of the largest diversified health care management companies in the United States, offering a broad spectrum of services through its acute care hospital and behavioral health segments. The company operates general acute care hospitals, surgical hospitals and ambulatory centers, as well as inpatient and outpatient behavioral health facilities. Its network provides emergency and specialized medicine, diagnostic imaging, laboratory services, advanced surgical care and rehabilitation, complemented by a comprehensive array of behavioral services including psychiatric treatment, addiction programs and developmental disabilities care.

In the acute care segment, UHS's facilities deliver services ranging from emergency department treatment and intensive care to maternity care and outpatient surgery.

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