Joby Aviation closes $591 million stock offering with full underwriter option
Investing.com -- Select Medical Holdings (NYSE:SEM) stock surged 11% Wednesday after RBC Capital analyst Ben Hendrix raised his price target on the company to $20 from $16 while maintaining an Outperform rating.
The new target represents significant upside from Tuesday’s closing price of $13, reflecting what Hendrix described as "significant dislocation" in the company’s shares that creates "an attractive entry point as regulatory headwinds lift."
Investors responded positively to Hendrix’s note highlighting the Centers for Medicare & Medicaid Services’ (CMS) decision to delay implementation of the 20% transmittal rule. This delay "indicates receptivity to industry concern over recent changes in LTAC reimbursement," according to the analyst.
Hendrix expects Select Medical to record a one-time benefit in the third quarter of 2025, which would offset part of the LTAC reimbursement headwind recorded through the first half of 2025. This gives the analyst "added confidence" in his street-high 2025 adjusted EBITDA estimate.
The price target increase reflects both easing regulatory headwinds and what Hendrix considers "a more appropriate LTAC multiple assumption going forward" for the healthcare company, which specializes in long-term acute care hospitals and rehabilitation facilities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.