Asia FX moves little with focus on US-China trade, dollar steadies ahead of CPI
Investing.com - Mizuho (NYSE:MFG) has reduced its price target on Select Medical (TASE:BLWV) Holdings (NYSE:SEM) to $18.00 from $21.00 while maintaining an Outperform rating following the company’s second-quarter 2025 earnings report. The stock, currently trading at $12.07, has declined over 36% year-to-date and is hovering near its 52-week low of $11.65. According to InvestingPro analysis, the company appears undervalued at current levels.
The firm cited "disappointing" Q2 2025 results, with particular pressure in the company’s critical illness recovery hospital (LTCH) segment, which continues to face challenges from the Medicare high-cost outlier threshold and the 20% transmittal rule. Despite these challenges, the company maintains profitability with $81.1 million in net income over the last twelve months.
Despite these challenges, Mizuho highlighted Select Medical’s inpatient rehabilitation (IRF) segment as a continuing bright spot in the company’s operations.
Mizuho maintained its 2025-2027 estimates for Select Medical, expressing belief that hospital operators should eventually adjust better to the higher Medicare outlier environment.
The firm’s continued Outperform rating reflects its expectation that the IRF segment will continue to drive growth for Select Medical, offsetting some of the ongoing pressure in the LTCH segment.
In other recent news, Select Medical Holdings reported its second-quarter earnings, revealing mixed results. The company achieved a significant earnings per share (EPS) beat, reporting $0.60 against an expected $0.24, marking a substantial 150% surprise. However, the revenue did not meet expectations, coming in at $1.28 billion compared to the anticipated $1.34 billion. Despite the revenue shortfall, the adjusted earnings per share of $0.32 also exceeded analyst expectations, aided by a lower effective tax rate and a 3% reduction in shares outstanding. Benchmark has reiterated its Buy rating on Select Medical with a price target of $21, following these earnings results. The adjusted EBITDA was reported at $125.4 million, slightly below the Street estimate of $126 million. These recent developments highlight the company’s performance and analyst perspectives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.