Opinions
The Panic-Proof Portfolio (Stockchase Research)
Ardent Healthcare Partners Inc.
ARDT-N
TOP PICK
Jul 01, 2025
Stock price when the opinion was issued
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Premium contentThis operator of 30 acute care hospitals and 200 care sites in the US is a TOP PICK. They are managing through turbulent times for the sector, while growing cash reserves and reducing debt. Nursing costs are stabile and they will soon know about a partnership in New Mexico which analysts believe will further stimulate cash flow. It trades at 9x earnings, 1.6x book and supports a 23% ROE. We recommend setting a stop-loss at $8.00, looking to achieve $16.50 -- upside potential of 28%. Yield 0%
(Analysts’ price target is $19.90)Premium contentPremium contentWe reiterate ARDT as a TOP PICK. The healthcare and hospital operator recently reported it will add 18 new urgent care units, which will add to cash flow going forward. Cash reserves are growing, while debt is retired. It trades at 9x earnings, 1.8x book and supports a ROE of 24%. We recommend trailing up the stop (from $11.00) to $12.50, looking to achieve $20.00 -- upside potential of 33%. Yield 0%
(Analysts’ price target is $20.32)
Despite concerns from the US Administration's new budget limiting healthcare funding, we reiterate ARDT as a TOP PICK. Although the bill puts limitations on new funding options for hospital operators like ARDT, analysts cite existing agreements are grandfathered and they expect critics to continue to chip away at the restrictions. It trades at 9x earnings, under 2x book, and supports a ROE of 24%. Cash reserves are growing, while debt is repaid. We continue to recommend a tight stop at $12.50, looking to achieve $18.00 -- upside potential of 28%. Yield 0%
(Analysts’ price target is $20.32)