NEW YORK (TheStreet) -- Shares of HCA Holdings Inc (HCA) were gaining, higher by 1.51% to $63.39 in mid-morning trading Friday, after analysts at Wells Fargo upgraded the company to "outperform" from "market perform" this morning.
The firm cited improved long-term visibility into financial results following yesterday's Supreme Court decision.
The stock, along with other health care company stocks, jumped on the Supreme Court ruling that the federal government can continue issuing subsidies to Americans through the Affordable Care Act, also known as "Obamacare."
Eligible American in the 34 states with federal marketplaces, as well as those living in states with their own exchanges, will continue to get federal tax credits.
Wells Fargo analysts expect hospitals to close some of the EBITDA multiple gap, driving multiple expansion.
"Our forecast for multiple expansion reflects the improved longterm visibility into financial results due to a continuing rise in the number of individuals with health insurance in the United States that began on Janurary 1, 2014," the firm wrote in a note this morning.
Nashville, Tenn.-based HCA Holdings owns, manages or operates hospitals, freestanding surgery centers, diagnostic and imaging centers, radiation and oncology therapy centers, rehabilitation and physical therapy centers and various other facilities.
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, impressive record of earnings per share growth, compelling growth in net income, revenue growth and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins."