Analyst Bill Sutherland from Benchmark Co. maintained a Buy rating on Surgery Partners and keeping the price target at $35.00.
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Bill Sutherland has given his Buy rating due to a combination of factors that suggest a positive outlook for Surgery Partners. The recent proposal by CMS to phase out the Inpatient Only list over three years, starting with the removal of 285 procedures, is a significant development. This change is expected to benefit Ambulatory Surgical Centers (ASCs) by potentially increasing the volume of procedures they can perform.
Furthermore, the revision of the ASC Covered Procedures List, which proposes to add 276 procedures, aligns with the company’s strengths, as musculoskeletal (MSK) procedures account for a substantial portion of Surgery Partners’ revenue. The proposed changes by CMS, if finalized, are likely to drive growth in MSK procedures at ASCs, thereby enhancing the company’s revenue prospects. These regulatory shifts present a favorable environment for Surgery Partners, justifying the Buy rating.
In another report released on July 2, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $36.00 price target.