Procore stock price target raised to $90 from Goldman Sachs on stabilizing growth
Investing.com - Mizuho lowered its price target on Select Medical Holdings (NYSE:SEM) to $17.00 from $18.00 on Monday, while maintaining an Outperform rating on the healthcare provider’s stock. Currently trading at $13.83, SEM appears undervalued according to InvestingPro analysis, despite having declined 25.7% year-to-date.
The price target reduction follows Select Medical’s third-quarter 2025 earnings report, which showed mixed performance across the company’s business segments. Mizuho also reduced its 2025-2027 estimates for the company. Despite these revisions, InvestingPro data shows SEM maintains a strong 10% free cash flow yield and trades at a P/E ratio of 19.1.
Select Medical’s inpatient rehabilitation facility (IRF) segment emerged as a standout performer in the quarter. The company’s critical illness recovery hospital segment, also known as long-term care hospitals (LTCH), delivered positive results, benefiting from a delay in the implementation of the 20% transmittal rule.
The outpatient rehabilitation segment, however, faced unexpected pressure due to changes in payer mix, according to Mizuho’s analysis of the quarterly results.
Despite anticipated continued pressure in the LTCH segment, Mizuho expects hospital operators will eventually adapt better to the higher Medicare-outlier environment, while the IRF segment should continue to drive growth for Select Medical.
In other recent news, Select Medical Holdings Corporation reported its third-quarter 2025 earnings, exceeding analyst expectations. The company achieved an earnings per share (EPS) of $0.23, surpassing the forecasted $0.16, resulting in a 43.75% earnings surprise. Additionally, Select Medical reported revenues of $1.36 billion, which also exceeded the anticipated $1.33 billion. Despite these positive financial results, the company’s stock experienced a decline. The stock fell 7.71% in premarket trading, closing at $14.2, down from the previous close of $15. These developments reflect the company’s recent financial performance and market reactions.
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