The lower price target comes after the Dallas-based healthcare services company reported its 2015 fourth quarter results early last week.
"We maintain our market perform rating on THC on a mixed 4Q with a beat on revenue but missed almost all metrics, initial 2016 guidance below consensus, and market sentiment headwind for highly-leveraged companies," Leerink said in an analyst note.
Tenet posted adjusted earnings of 35 cents per diluted share, beating analysts' estimates by one cent. Revenue for the period was $5.03 billion, which topped analysts' expectations of $4.81 billion.
For 2016, the company forecasts adjusted earnings per diluted share between $1.18 and $2.25 on revenue of $18.8 billion to $19.2 billion. Analysts are looking for earnings of $2.15 per share on revenue of $19.1 billion.
"All metrics with the exception of Bad Debt disappointed with the mix shifting to Ambulatory from Hospital likely offering tailwinds to Bad Debt with prior authorization," the firm added.
The company's bad debt expense ratio improved modestly year-over-year and is likely flat or better due to ambulatory surgery generally requiring prior authorization, Leerink added.
Shares of Tenet closed at $25.84 on Tuesday.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
This is driven by a few notable weaknesses, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: THC