Surgery Partners price target lowered to $31 from $35 at RBC Capital

RBC Capital lowered the firm’s price target on Surgery Partners (SGRY) to $31 from $35 but keeps an Outperform rating on the shares after its Q3 earnings miss. Some stock price weakness was to be expected, but the magnitude of the move is overdone, especially given that the M&A backdrop remains favorable and the long-term same-store algorithm remains intact, the analyst tells investors in a research note. While the management pointed to slowing volume and payer mix trends, these developments bring 2025 adjusted EBITDA guidance down to the midpoint of their long-term algorithm, the firm added.