Leerink Partners analyst Whit Mayo has maintained their neutral stance on MD stock, giving a Hold rating on February 21.
Whit Mayo’s rating is based on a combination of factors, including the current trends in birth rates and payer mix dynamics. The January Birth Tracker indicates a 4.7% year-over-year increase in births, aligning closely with December’s trends and showing a positive outlook for the first quarter of 2025. However, there is caution regarding the sustainability of these trends, particularly if the favorable payer mix were to change.
Furthermore, while Florida’s birth rates and commercial birth growth are strong, there is a noted increase in Medicaid births for the first time in nearly two years. This shift in payer mix, although currently beneficial, raises concerns about Pediatrix Medical Group’s ability to maintain growth if these trends were to moderate. These mixed signals contribute to the Hold rating, reflecting a balanced view between current positive trends and potential future uncertainties.
In another report released on February 21, Mizuho Securities also maintained a Hold rating on the stock with a $18.00 price target.
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