Surgery Partners price target lowered to $28 from $30 at Jefferies

Jefferies lowered the firm’s price target on Surgery Partners (SGRY) to $28 from $30 and keeps a Buy rating on the shares. The company’s FY25 guidance cut, which came in reaction tot early signs of volume deceleration and shifting payor mix, as well as a slower pace of M&A, is understandably pressuring the stock on Monday, the analyst tells investors in a research note. The firm added, however, that it maintains its Buy thesis given its belief that the investment story on the stock and driver of upside primarily center on upcoming asset divestitures and the resulting de-leveraging of the company’s balance sheet.