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Investing.com -- HCA Healthcare’s long run of outperformance is leaving little room for error, Morgan Stanley said as it downgraded the largest U.S. hospital operator to Underweight, arguing that key tailwinds are likely to fade just as the stock trades at a peak valuation.

The bank kept its price target unchanged at $425, but said HCA’s strong execution over the past five years has already been fully reflected in the share price.

HCA has outperformed the Nasdaq and the broader healthcare sector by 120% and 175%, respectively, over that period, helped by a post-Covid rebound in patient volumes, expanding scale in fast-growing states such as Texas and Florida, and a sharp rise in Affordable Care Act enrollment.

Morgan Stanley said those drivers are now moderating. The stock is trading at a new peak multiple, while several policy-related supports that have boosted earnings are expected to ease.

Analysts noted that HCA has experienced drawdowns of roughly 15% to 40% in each of the past five years, more than double typical market corrections, underscoring limited tolerance for any disappointment.

ACA subsidies and Medicaid supplemental payments have been a major contributor to growth. Exchange enrollment doubled between 2021 and 2025, lifting admissions and improving payer mix, with ACA-related revenue now accounting for about 10% of total revenue. Supplemental payments generated about $4.9bn of revenue in 2024, roughly 7% of total revenue, with high margins contributing meaningfully to EBITDA.

Morgan Stanley said both supports are likely to become less powerful over time. Its base case sees equivalent admissions growth slowing to about 2.4% in 2026, with a wider range depending on policy outcomes.


While HCA’s resiliency program could help cushion margins, the bank said the current valuation implies a need for further upside, not just stability.

Within the hospital sector, Morgan Stanley said it prefers peers with more attractive valuations and clearer catalysts, pointing to Tenet Healthcare as offering better risk-reward given its discount to HCA and a more aggressive capital return profile.

The bank flagged potential risks to its Underweight view, including stronger-than-expected benefits from AI adoption, continued heavy share buybacks, or higher utilization and patient acuity.

Even so, it said HCA’s combination of slowing growth and peak valuation makes the stock less compelling after years of strong gains.

Investing.com -- STMicroelectronics NV ADR (NYSE:STM) stock rose 2.3% in premarket trading Monday after the semiconductor company highlighted its decade-long partnership with SpaceX that has been crucial for the Starlink satellite internet service.

The collaboration has produced billions of co-designed products used in millions of Starlink user terminals and over 10,000 satellites. STMicroelectronics provides custom-made chips that enable Starlink’s phased-array antennas to deliver high-speed internet to more than 8 million customers across 150+ countries.

According to the announcement, Starlink products are co-designed with ST engineers in France and Italy, with manufacturing taking place in facilities across France, Malta, and Malaysia. The partnership leverages ST’s BiCMOS chip technology for the high-performing phased-array antennas in Starlink terminals.

"We are proud to celebrate a decade of collaboration with SpaceX," said Remi El-Ouazzane, President of Microcontrollers, Digital ICs, and RF Products Group at STMicroelectronics. "Through co-designing key chips, providing engineering services and delivering high-volume manufacturing, we demonstrate the exceptional value of ST’s innovation and manufacturing capabilities."

The semiconductor company has scaled its panel level packaging operations to deliver over 5 million chips daily to support Starlink’s rapid expansion. Beyond the antenna technology, Starlink also uses multiple ST products including STM32 microcontrollers, secure elements, and GNSS across its satellite constellation and infrastructure.

The companies plan to continue their collaboration, focusing on next-generation satellites and user terminals while advancing key enabling technologies for phased-array antennas powered by ST’s BiCMOS-based solutions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Amphastar Pharmaceuticals (NASDAQ:AMPH) stock gained 2.3% in Monday’s premarket trading after the company announced FDA approval of its teriparatide injection, a generic equivalent to Eli Lilly’s (NYSE:LLY) FORTEO.

The approval marks Amphastar’s first pen device combination product, which is indicated for treating osteoporosis in various patient populations. According to IQVIA data, the overall U.S. market for teriparatide injection reached approximately $585 million for the 12 months ended September 30, 2025.

Amphastar plans to launch the product by the end of the year, with the drug manufactured at its U.S. facility. This domestic production capability provides a potential advantage in the market where many competitors rely on overseas manufacturing.

"We are proud to announce FDA approval of Amphastar’s first-ever pen device combination product, demonstrating our continued commitment to advancing innovative approaches for complex drug delivery mechanisms," said Dr. Jack Zhang, Amphastar’s President and CEO.

The company’s pipeline includes two ANDAs and one biosimilar insulin filed with the FDA targeting products with a combined market size exceeding $1.8 billion. Additionally, Amphastar is developing three biosimilar products targeting a market exceeding $6 billion and two generic products targeting a market of over $1 billion.

Amphastar has also entered into an exclusive license agreement with Anji for the development of three proprietary peptides targeting cancer treatment and wet age-related macular degeneration.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Jefferies upgraded Viking Holdings to Buy while downgrading Norwegian Cruise Line Holdings to Hold in a note on Monday, citing diverging growth visibility and balance sheet trajectories heading into 2026.

In a sector-wide outlook, Jefferies analyst David Katz told investors that it is “bullish group-wide” for 2026, applying criteria focused on “business and management quality, visible growth, and reasonable valuation.”

Within that framework, the firm said it is “upgrading VIK to Buy on sustained growth in capacity and pricing,” while “downgrading NCLH to Hold on strategic shifts and sustained leverage.”

Katz argued that European exposure should be a key differentiator for cruise operators. 

Addressing concerns over Norwegian’s recent redeployment of capacity, the analyst stated: “Don’t sweat the Caribbean, look to Europe,” adding that operators with greater European exposure “should benefit vs. Caribbean-focused operators.” 

Jefferies noted that Viking, with 61% exposure to Europe, stands to gain from reduced competition, particularly if geopolitical conditions improve and fuel prices ease.

The Viking upgrade reflects what Jefferies described as “continued strong growth and business model quality, and beneficial positioning in luxury.” 

The firm expects “industry-leading net yield growth of 5% and 4% in FY26-FY27,” alongside high-teens EBITDA growth and “a FCF conversion rate of ~100%,” supporting sub-1.0x leverage and capital returns.

By contrast, Jefferies believes Norwegian faces mounting challenges. 

“Continued slippage on expectations for deleveraging, paired with a rushed capacity and strategy shift,” have tempered its view.

The firm warned that moving “10% of FY26 capacity from Europe to the Caribbean on short notice is likely to interrupt normal bookings and result in yield headwinds,” while leverage expectations have worsened materially.

Investing.com -- British stocks climbed further during Monday afternoon trade, while the pound strengthened against the U.S. dollar, and broader European equity markets traded in positive territory.

As of 1251 GMT, the blue-chip index FTSE 100 rose 1% and the British GBP/USD fell 0.2% against the dollar to above 1.33. 

DAX index in Germany rose 0.3%, the CAC 40 in France gained 1.02%.  

UK round up

House prices across the UK fell by 1.8% in December, matching the rate of decline seen in November, according to data released by Rightmove.

The London housing market showed more resilience than the national average, with prices in the capital dropping by a smaller margin of 1.2% during the same period. On an annual basis, London property values have remained steady, contrasting with the broader weakening trend observed in the national housing market.

TT Electronics Plc (LON:TTG) stock plunged after DBAY Advisors Limited announced it would not proceed with a takeover offer for the company.

DBAY confirmed in a regulatory filing that it "does not intend to make an offer for TT Electronics" ahead of the December 15 deadline set by the Panel on Takeovers and Mergers, effectively abandoning a potential bidding war.

In other market news, UK communications regulator Ofcom has launched investigations into BT Group PLC (LON:BT) and Three following major mobile service disruptions that occurred during summer 2025. The disruptions affected emergency calls across the United Kingdom.

The regulatory probe will examine whether the telecom companies failed to comply with requirements that mandate operators take appropriate measures to identify risks, prepare for network compromises, and mitigate adverse effects when outages occur.

Meanwhile, Porvair PLC (LON:PORV) announced Monday that its adjusted earnings per share for the year ended November 30, 2025, is expected to be marginally ahead of market expectations. The company also stated that operating profit and margin would surpass the previous year’s results.

Deutsche Bank upgraded Bridgepoint Group PLC (LON:BPTB) to Buy from Hold on Monday, while maintaining its price target at 345 pence.

The upgrade follows a significant decline in Bridgepoint shares, which have fallen 22% since the company released its first-half 2025 results on July 18. The results were described as largely in-line with expectations.

The London Metal Exchange (LME) released an update on Monday detailing its approach to position management and how it will implement the UK Financial Conduct Authority’s new commodity market position limits regime.

Hikma Pharmaceuticals PLC (LON:HIK) said that Riad Mishlawi has stepped down as Chief Executive Officer and from the company’s Board of Directors by mutual agreement.

Executive Chairman Said Darwazah, who previously served as CEO, will immediately take over all CEO responsibilities. Chief Financial Officer Khalid Nabilsi will join Hikma’s Board of Directors and assume expanded management duties to strengthen the company’s focus on executing its strategic plans.

In separate news, Britain’s Financial Reporting Council (FRC) has launched an investigation into Ernst & Young’s audit of Shell PLC (AS:SHEL) 2024 financial statements. The probe, announced Monday, will examine whether EY violated the UK’s Revised Ethical Standard regarding time limitations for audit partner rotation.

The UK’s Financial Conduct Authority (FCA) revealed plans to reform mortgage rules to help first-time buyers and self-employed individuals access the housing market more easily. The regulatory body outlined four key areas of focus, which also aim to help homeowners unlock housing wealth for retirement.

Meanwhile, Jefferies has adopted a more cautious stance on U.K. consumer stocks, citing a weaker disposable income outlook that conflicts with optimistic sales expectations and high valuations.

The broker projects disposable income growth slowing to 1.9% in fiscal 2026/27, down from 2.6% the prior year, as lower wage growth, rising unemployment and ongoing cost pressures affect households.

Jefferies also noted that consensus like-for-like sales growth for major U.K. retailers has moved above its forecast for disposable income growth for the first time since early 2023.