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On Monday, Mizuho (NYSE:MFG) Securities increased its price target for Pediatrix Medical (TASE:BLWV) Group (NYSE:MD) shares to $18.00, up from the previous target of $15.00, while maintaining a Neutral rating on the stock. The adjustment follows Pediatrix’s robust financial performance in the fourth quarter of 2024, which saw the company surpassing adjusted EBITDA expectations. According to InvestingPro analysis, the company appears undervalued compared to its Fair Value, with the stock currently trading at $15.61.
Pediatrix Medical Group reported an adjusted EBITDA of $65.2 million for Q4:24, which was 26% higher than consensus estimates. The significant earnings beat was attributed to a favorable payer mix and solid same-store revenue growth. The company’s strong performance is reflected in its impressive market returns, with a 77.6% gain over the past year and an 11.1% increase in the last week alone. In light of these results, Mizuho analysts updated their adjusted EBITDA forecasts for 2025 and 2026 and introduced their projections for 2027. For deeper insights into Pediatrix’s performance metrics and growth potential, InvestingPro subscribers can access the comprehensive Pro Research Report, one of 1,400+ available for top US stocks.
The company has also provided its initial guidance for 2025, suggesting a modest year-over-year adjusted EBITDA growth at the midpoint of approximately 0.5%, which is 1% above the consensus estimates. Mizuho’s analysts believe that the guidance set by Pediatrix is attainable and suggest that there could be potential for further upside.
Despite the positive outlook and the raised price target, Mizuho’s stance on Pediatrix Medical Group remains Neutral. The firm’s analysts have not shifted their overall rating but acknowledge the company’s strong performance and the possibility of achieving the projected financial targets for the coming years. InvestingPro data shows the company maintains a GOOD financial health score of 2.78, with total EBITDA reaching $215.91M in the last twelve months. Additional InvestingPro Tips highlight factors such as expected net income growth and strong free cash flow yield.
In other recent news, Pediatrix Medical Group reported impressive financial results for the fourth quarter of 2024, with earnings per share (EPS) reaching $0.51, significantly surpassing the forecasted $0.37. The company also reported revenues of $502 million, exceeding the expected $487.06 million, driven by strong same-unit revenue growth of 8.7%. Additionally, Pediatrix’s adjusted EBITDA for the quarter was $69 million, well above expectations. Mizuho Securities responded by raising its price target for Pediatrix Medical to $18 from $15, maintaining a neutral rating on the stock. The investment firm noted that Pediatrix’s adjusted EBITDA of $65.2 million surpassed consensus estimates by 26%, attributing the success to a favorable payer mix and same-store revenue growth. Mizuho has also updated its adjusted EBITDA estimates for the years 2025 to 2027, expressing a positive outlook on the company’s ability to meet its guidance for 2025. Pediatrix has provided preliminary guidance for 2025, projecting adjusted EBITDA between $215 million and $235 million, with anticipated full-year revenue of approximately $1.8 billion. Despite these positive developments, the firm remains cautious, maintaining a neutral stance due to the current economic environment.
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