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Investing.com - Cantor Fitzgerald has reiterated its Overweight rating and $36.00 price target on Surgery Partners (NASDAQ:SGRY), according to a research note released Wednesday. The target represents significant upside potential, with analyst consensus remaining bullish at 1.58 (Strong Buy). According to InvestingPro, the company maintains a "GOOD" overall financial health score.
The firm expressed confidence in Surgery Partners’ consensus expectations, noting they align directionally with survey results on outpatient volume and pricing. Cantor Fitzgerald believes the company’s guidance indicating first-half 2025 volume will exceed rates remains on track. This optimism is supported by the company’s robust revenue growth of 13.5% over the last twelve months.
The research note highlighted some concern regarding the step-down in second-quarter 2024 SWB (salaries, wages, and benefits), as survey results indicate upward movement in this area.
Cantor Fitzgerald also pointed out that Bain special committee costs may have continued through most of the second quarter, as the related announcement was not made until June 17.
Surgery Partners, which operates surgical facilities across the United States, continues to focus on outpatient surgical care as healthcare procedures increasingly shift away from traditional hospital settings.
In other recent news, Surgery Partners, Inc. announced the conclusion of acquisition discussions with Bain Capital, opting to remain an independent publicly traded company. The Special Committee of independent directors determined that the company’s prospects outweighed Bain Capital’s proposal. Surgery Partners’ CEO, Eric Evans, reaffirmed the company’s full-year 2025 guidance, projecting revenues between $3.30 billion and $3.45 billion and adjusted EBITDA between $555 million and $565 million. UBS analysts maintained their Buy rating on Surgery Partners stock with a $34.00 price target, highlighting the company’s growth potential in the healthcare services sector. The analysts noted that Surgery Partners trades at a multiple of its future EBITDA estimates, contrasting with AMSURG, which is being sold based on trailing EBITDA. Surgery Partners also held its annual stockholders meeting, re-electing key directors and approving the 2025 Omnibus Incentive Plan. The company plans to host an Investor Day in the second half of 2025 to discuss its strategy and industry outlook. Despite the failed acquisition talks, Bain Capital expressed optimism about Surgery Partners’ business and leadership.
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