Select Medical (SEM – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Bill Sutherland from Benchmark Co. maintained a Buy rating on the stock and has a $21.00 price target.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Bill Sutherland has given his Buy rating due to a combination of factors that highlight Select Medical’s potential for growth and recovery. Despite a recent pullback in stock price following a first-quarter miss and a slight reduction in full-year AEBITDA guidance, the company’s valuation remains attractive. SEM is trading at a significant discount compared to its hospital peer group, which presents an opportunity for investors.
Additionally, the Inpatient Rehab Hospital segment, which constitutes a substantial portion of SEM’s AEBITDA, is demonstrating strong performance with high margins and plans for expansion. This growth is expected to offset challenges faced by the Long-Term Acute Care Hospital segment. Furthermore, the Outpatient Rehab segment is poised for future margin improvements due to the implementation of an upgraded management system. These strategic initiatives and the company’s overall stability in margins contribute to the positive outlook and Buy rating.
Sutherland covers the Healthcare sector, focusing on stocks such as Clinigence Holdings, Omnicell, and Select Medical. According to TipRanks, Sutherland has an average return of -3.1% and a 38.75% success rate on recommended stocks.