Select Medical price target raised to $47 from $40 at RBC Capital

RBC Capital raised the firm’s price target on Select Medical (SEM) to $47 from $40 and keeps an Outperform rating on the shares. The company reported “solid” Q3 results with adjusted EBITDA ahead of consensus expectations driven by strong IRF performance, and the management raised 2024 adjusted EBITDA guidance by the magnitude of the beat, the analyst tells investors in a research note. Despite shares being up 54% year-to-date, Select Medical shares remain undervalued given the improved capital structure post-Concentra IPO and solid fundamentals, the firm added.