NEW YORK (TheStreet) --Shares of HCA Holdings Inc. (HCA) are down by 0.92% to $65.40 in pre-market trading on Wednesday, following a ratings downgrade to "market perform" from "outperform" at Wells Fargo.
The firm said it reduced its rating on the holding company, whose affiliates own and operate hospitals and other related healthcare entities, based on its belief the hospital group will be negatively affected by the Supreme Court's decision to consider the King v. Burwell case.
King v. Burwell will decide if the federal government can continue to subsidize private Affordable Care Act coverage in states that didn't establish their own insurance exchanges, USA Today reported.
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Wells Fargo also cut its price target on HCA Holdings to a range between $64 and $70, from $68 to $78.
Separately, TheStreet Ratings team rates HCA HOLDINGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HCA HOLDINGS INC (HCA) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, revenue growth, good cash flow from operations and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."