Analyst Note
| Julie Utterback, CFA |Narrow-moat HCA Healthcare turned in weaker-than-expected first-quarter results as labor cost inflation put pressure on the bottom line, and management has lowered its guidance for 2022 after only one quarter. However, considering cash flows generated since our last valuation update, we are not changing our $239 fair value estimate. Even with a midteens percentage drop after today's announcement, the shares still look about fairly valued.