Mizuho Securities analyst Ann Hynes has reiterated their bullish stance on SGRY stock, giving a Buy rating on March 10.
Ann Hynes has given her Buy rating due to a combination of factors including Surgery Partners’ strong financial performance and favorable market conditions. The company reported robust Q4:24 results, with adjusted EPS surpassing consensus estimates by 22% and revenue growing by 17.5% year-over-year, which was 4.4% above expectations. Additionally, the company’s cash flows from operations saw a significant increase of 78% in the quarter.
Moreover, Ann Hynes notes that Surgery Partners has limited exposure to potential regulatory changes, such as site-neutrality and Medicaid cuts, which minimizes risk. The company anticipates a worst-case scenario impact of only about 1% on revenue from site-neutrality, and Medicaid represents just 5% of total revenue. These factors, along with the company’s strategic positioning in the ambulatory surgery center market, support the Buy rating and the maintained price target of $28.
In another report released on March 10, RBC Capital also reiterated a Buy rating on the stock with a $35.00 price target.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SGRY in relation to earlier this year.