Analyst Whit Mayo of Leerink Partners reiterated a Buy rating on Surgery Partners (SGRY – Research Report), with a price target of $36.00.
Whit Mayo has given his Buy rating due to a combination of factors that highlight the company’s strong performance and future potential. Surgery Partners has demonstrated consistent growth, driven by robust demand and effective cost management, as evidenced by a 5.6% year-over-year increase in same-store revenues and a strategic shift towards higher acuity cases such as orthopedics and total joints. The company has also successfully mitigated risks associated with Medicaid, DPP, and site neutrality, positioning itself well for continued growth.
Moreover, Surgery Partners has shown strong liquidity, ensuring its ability to fund mergers and acquisitions for the next five years. Despite a slight reduction in revenue and EBITDA guidance for 2025 due to recent divestitures, the company’s long-term growth prospects remain solid, supported by a substantial recruitment of new doctors and a favorable mix shift. Mayo’s confidence is further reflected in the unchanged price target, which is based on a forward EV/EBITDA-NCI multiple, indicating a positive outlook for the company’s stock.
According to TipRanks, Mayo is a 4-star analyst with an average return of 2.8% and a 47.35% success rate. Mayo covers the Healthcare sector, focusing on stocks such as Pediatrix Medical Group, Ardent Health Partners, Inc., and Acadia Healthcare.
In another report released yesterday, UBS also maintained a Buy rating on the stock with a $34.00 price target.