Oppenheimer analyst Michael Wiederhorn believes Community Health has a "highly attractive opportunity" to improve its portfolio, given recent underperformance and further potential penetration of the Affordable Care Act. The company has begun the process of spinning off Quorum Health Corporation, and should see "some mild" benefits post-spinoff, including slightly improved margins, reduced exposure to certain low-growth markets and improved liquidity, Wiederhorn tells investors in a research note. The analyst reiterates an Outperform rating and $35 price target on the shares.

Oppenheimer lowered the firm's price target on Community Health to $4.50 from $5.50 and keeps an Outperform rating on the shares following quarterly results. The firm notes Community Health maintained its 2024 outlook. Overall, at these levels, Oppenheimer continues to see attractive upside for long-term investors.

Reports Q1 revenue $3.14B, consensus $3.09B. On a same-store basis, admissions increased 3.8% and adjusted admissions increased 1.9%, compared to the same period in 2023. The company said, "We were pleased with our first quarter performance compared to both prior year and prior quarter. Progress was demonstrated on key operational and strategic priorities, and we remain focused on building further momentum as we pursue the opportunities available to us this year"