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On Tuesday, Leerink Partners made adjustments to its expectations for Surgery Partners, a company traded on NASDAQ under the ticker (NASDAQ:SGRY). The firm’s analyst, representing Leerink Partners, has revised the price target downward to $34 from the previous $36 while maintaining an Outperform rating on the stock. According to InvestingPro data, analyst targets for the stock range from $24 to $36, suggesting potential upside from current levels around $23.
Surgery Partners’ performance in the first quarter of 2025 was marked by consistent themes, including robust patient volumes, effective cost management, and a strong presence of mergers and acquisitions activity. The company demonstrated solid revenue growth of 13.5% and maintains an EBITDA of $630.5 million. The analyst from Leerink Partners highlighted the company’s track record of consistently meeting its external targets over the years. InvestingPro analysis shows the company has achieved an impressive 11% revenue CAGR over the past five years.
The analyst also noted that there has been no update regarding the strategic review of Surgery Partners. It was suggested that the uncertainty surrounding policy may have slowed this process. Despite the lack of news on this front, Leerink Partners expressed a belief in the potential for a positive outcome, considering a no-deal scenario to be very unlikely. InvestingPro indicates that while the company isn’t currently profitable, analysts expect it to turn profitable this year. Get access to more exclusive insights and 6 additional ProTips with an InvestingPro subscription.
The Outperform rating reiterated by Leerink Partners reflects the firm’s confidence in Surgery Partners’ ability to continue its strong performance. The analyst’s commentary underscores the company’s steady execution against its goals and the expectation of continued success in the future.
Investors and market watchers will be keeping an eye on Surgery Partners as it navigates the evolving healthcare landscape, with particular attention to any developments in its strategic review process or further commentary from industry analysts.
In other recent news, Surgery Partners Inc . reported its first-quarter 2025 earnings, showing mixed results. The company’s earnings per share (EPS) came in at $0.04, falling short of the forecasted $0.08, while net revenue reached $776 million, slightly below the expected $778.04 million. Despite missing expectations, the company saw an 8% year-over-year increase in net revenue and a 7% rise in adjusted EBITDA to $103.9 million. Surgery Partners continues to expand its operational capabilities with investments in surgical robots and new facilities. The company also projects full-year 2025 revenue between $3.3 billion and $3.45 billion, with expected adjusted EBITDA ranging from $555 million to $565 million. Additionally, Bain Capital’s nonbinding acquisition proposal remains under consideration by a special committee of independent directors. These recent developments underscore the company’s ongoing efforts to strengthen its financial performance and operational capabilities.
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