Select Medical price target lowered to $19 from $23 at RBC Capital

RBC Capital lowered the firm’s price target on Select Medical (SEM) to $19 from $23 but keeps an Outperform rating on the shares. Shares have declined over 20% since the company posted weaker Q1 results last week and modestly lowered its guidance range, primarily due to CIRH margin pressure caused by the high-cost outlier threshold, but while the higher threshold represents a formidable reimbursement headwind, RBC believes lower acuity expected in next few quarters should limit the impact for the balance of the year, the analyst tells investors in a research note.