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Investing.com - UBS raised its price target on Pediatrix Medical Group (NYSE:MD) to $16.50 from $16.00 while maintaining a Neutral rating on the stock. The company’s shares, currently trading at $15.50, have delivered an impressive 55.94% return over the past year. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.
The price target increase follows Pediatrix’s second quarter outperformance, which prompted UBS to revise its financial projections for the medical services provider. This optimism is reflected in seven analysts revising their earnings estimates upward for the upcoming period, as tracked by InvestingPro.
UBS raised its 2025 adjusted EBITDA estimate to $250 million from $231 million previously, and its 2026 adjusted EBITDA estimate to $256 million from $232 million.
The firm also increased its adjusted earnings per share forecast for 2025 to $1.80 from $1.64, and for 2026 to $1.83 from $1.60, reflecting what it described as "the strong quarter."
The new price target is based on approximately 6.5x multiple applied to UBS’s 2026 adjusted EBITDA estimate, slightly below Pediatrix’s three-year average multiple of approximately 7x.
In other recent news, Pediatrix Medical Group reported strong earnings for the second quarter of 2025, surpassing analysts’ expectations. The company posted an earnings per share (EPS) of $0.53, exceeding the forecasted $0.42, which represents a 26.19% surprise. Revenue also slightly surpassed expectations at $468.84 million compared to the anticipated $464.37 million. These results allowed Pediatrix Medical Group to raise its fiscal year 2025 EBITDA guidance by $20 million at the midpoint. Despite this strong performance, Jefferies lowered its price target for Pediatrix Medical Group to $19.00 from $21.00, while maintaining a Buy rating on the stock. The adjustment was attributed to concerns regarding eAPTC. These developments indicate ongoing investor interest and confidence in Pediatrix Medical Group’s financial health and future performance.
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