Analyst Ryan Langston of TD Cowen maintained a Buy rating on Surgery Partners, retaining the price target of $28.00.
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Ryan Langston’s rating is based on several strategic factors that highlight the potential growth and value of Surgery Partners. The company has shown a steady increase in revenue and adjusted EBITDA, with strong performance in gastrointestinal and musculoskeletal volumes, despite some challenges in ophthalmology due to divestitures. This indicates a robust operational foundation that supports the Buy rating.
Furthermore, Surgery Partners is actively optimizing its portfolio by divesting non-core assets, which is expected to reduce leverage and enhance free cash flow. The management’s focus on de novo facility development, despite some delays, and ongoing margin expansion initiatives through procurement and revenue cycle management, are seen as positive long-term growth drivers. These strategic moves, along with the potential for future transactions, underpin Langston’s confidence in the company’s ability to achieve higher long-term value, justifying the Buy recommendation.
In another report released today, Benchmark Co. also maintained a Buy rating on the stock with a $30.00 price target.