Surgery Partners price target lowered to $24 from $28 at BofA

BofA lowered the firm’s price target on Surgery Partners (SGRY) to $24 from $28 and keeps a Buy rating on the shares. The firm notes the company cut its Q4 guide to reflect a delay in acquisitions and cautious outlook for commercial mix / volumes. The deal pipeline remains full, and the company expects to return to its typical acquisition spending. In positive, the company remains focused on improving leverage and free cash flows through selective divestitures of some surgical hospitals, BofA adds. The firm remains bullish on the long-term tailwinds for Ambulatory Surgery Centers, while the stock is trading at a depressed multiple.