Community Health Systems (NYSE:CYH), HCA Healthcare (NYSE:HCA), Tenet Healthcare (NYSE:THC) saw its ratings lowered at Wells Fargo following a Republican sweep and belief that enhanced exchange subsidies will expire.

For HCA, PT was lowered to $320 and rating downgraded to Underweight. For THC, PT lowered to $150 and rating downgrade to Equal Weight. For CYH, PT lowered to $2.50 and rating downgraded to Underweight. For Universal Health Services (NYSE:UHS), PT lowered to $230, with ratings reiterated at Overweight.

Wells Fargo said that it sees extension of enhanced exchange subsidies as unlikely following the Republican sweep.

“Our underlying ests ex this change have not changed materially. While we of course can't rule out some type of extension being reached, we are not comfortable ascribing value to that in our PTs at this time. Our 2026 adjusted EBITDA estimates decrease by ~7% for HCA, ~5% for CYH, ~6% for THC, and ~3% for UHS.”

HCA is trading down 1.7%, THC is trading down about 1%, CYH is trading down 3% and UHS is trading down 0.5% premarket.