Fubotv earnings beat by $0.10, revenue topped estimates
UBS maintained its Buy rating and $34.00 price target on Surgery Partners (NASDAQ:SGRY) Wednesday, despite the stock trading near its 52-week low at $20.33. According to InvestingPro data, the company maintains a "GOOD" overall financial health score, though its stock has declined about 12% in the past week. The research firm’s decision follows the company’s rejection of Bain Capital’s acquisition offer.
Surgery Partners’ board determined that Bain’s offer, which represented approximately 10.5 times UBS’s 2026 adjusted EBITDA estimates, undervalued the company’s earnings potential. For context, Surgery Partners has traded at an average multiple of about 12.5 times over the past seven years, while competitor AMSURG is reportedly being acquired at a multiple closer to 14 times. The company currently trades at an EV/EBITDA multiple of 12.5x, with analysts setting price targets ranging from $24 to $36.
The company reiterated its financial guidance and announced plans to hold an investor day, which UBS views as modest positives reflecting the board’s confidence in the business. UBS’s $34 price target is based on approximately 12.0 times its 2026 adjusted EBITDA estimates for Surgery Partners.
Surgery Partners has demonstrated strong growth in the healthcare services sector, with a 14.5% compound annual growth rate for adjusted EBITDA between 2019 and 2024. Recent InvestingPro data shows revenue growth of 13.5% and analysts expect the company to return to profitability this year. UBS continues to view surgery centers as an area with significant growth potential in healthcare services. Get access to detailed financial analysis and 8 additional ProTips for Surgery Partners with an InvestingPro subscription.
The firm notes that while Surgery Partners’ stock may experience near-term volatility due to increased interest from event-driven investors, it expects the valuation to eventually stabilize near current levels based on the fundamental value of the business. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading near its fair value, with a beta of 1.94 indicating higher market sensitivity.
In other recent news, Surgery Partners, Inc. announced that discussions with Bain Capital regarding a potential acquisition have ended without an agreement. The company’s Special Committee determined that remaining independent would provide greater value than Bain Capital’s proposal. Despite the conclusion of acquisition talks, Surgery Partners CEO Eric Evans reaffirmed the company’s full-year 2025 revenue guidance, projecting between $3.30 billion and $3.45 billion, alongside an Adjusted EBITDA of $555 million to $565 million. Surgery Partners also recently held its annual meeting, where stockholders approved key proposals, including the re-election of Class I directors and the 2025 Omnibus Incentive Plan. The ratification of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was also confirmed. On the analyst front, UBS maintained a Buy rating for Surgery Partners, noting the potential impact of AMSURG’s sale on the company’s valuation. Cantor Fitzgerald also maintained an Overweight rating, suggesting that the company’s stock is undervalued and highlighting stable trends within the organization. These developments indicate ongoing strategic evaluations and confidence in Surgery Partners’ future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.