In a report released on June 5, Whit Mayo from Leerink Partners maintained a Hold rating on Pediatrix Medical Group (MD – Research Report), with a price target of $14.00.
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Whit Mayo’s rating is based on a combination of factors, including the current birth trends and payer mix dynamics. The data from the March Birth Tracker indicates a slight increase in births, but the growth has slowed compared to the previous month. This deceleration raises concerns about the sustainability of positive trends in the birth rate, which could impact Pediatrix Medical Group’s organic EBITDA growth in the future.
Additionally, while the Florida commercial payer mix has shown impressive growth, reaching record highs, there is caution regarding the continuation of these favorable conditions. The commercial births have been strong, but the rate of growth has moderated, suggesting potential challenges ahead. These factors contribute to a cautious outlook, leading Whit Mayo to maintain a Hold rating on Pediatrix Medical Group’s stock.