Mizuho Sees Improving Margins Supporting HCA Healthcare into 2026

Group 1: Company Outlook - Mizuho raised its price target for HCA Healthcare, Inc. to $520 from $505, maintaining an Outperform rating, anticipating a pivotal year in 2026 for managed care and health facilities [1] - HCA Healthcare is expected to see improving margins across commercial, Medicaid, and Medicare plans after a challenging underwriting cycle [1] Group 2: Financial Performance - In Q3, HCA Healthcare reported a 2.1% year-over-year increase in same-facility admissions, with same-facility revenue per equivalent admission rising 6.6% to $18,390, reflecting higher utilization and improved pricing [2] Group 3: Market Trends - The aging US population is reshaping healthcare demand, with projections indicating that by 2035, individuals aged 65 and older will outnumber those aged 18 and younger, leading to sustained demand for hospital services and specialized treatment [3] - HCA has strategically positioned itself to benefit from this demographic shift, with a diversified network of facilities and ongoing investments in technology enhancing patient care and operational efficiency [3] Group 4: Market Share Goals - HCA aims to increase its market share from 27% in 2022 to 29% by 2030, indicating potential for further expansion [4]