Analyst Brian Tanquilut of Jefferies maintained a Buy rating on Surgery Partners (SGRY – Research Report), retaining the price target of $31.00.
Brian Tanquilut has given his Buy rating due to a combination of factors including Surgery Partners’ strong revenue growth and solid EBITDA performance. The company reported a 5.6% increase in same-store revenues, which was driven by a 5.1% rise in same-store volumes, surpassing market expectations. Despite a slight shortfall in the FY25 EBITDA guidance compared to consensus, this was largely attributed to a divestiture that accounted for $11 million of EBITDA, which is not expected to impact the company’s core operations.
Furthermore, management’s commentary on site neutrality legislation suggests minimal revenue impact, with only a 1% potential revenue decline in a worst-case scenario. This legislation could also present market share opportunities for Surgery Partners as hospitals may shift outpatient services to their ambulatory surgery centers. Additionally, the ongoing review of Bain Capital’s take-private offer by the Board of Directors adds a layer of potential strategic developments that could benefit shareholders.
In another report released today, Benchmark Co. also maintained a Buy rating on the stock with a $35.00 price target.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SGRY in relation to earlier this year.