Surgery Partners initiated with a Sector Weight at KeyBanc

KeyBanc initiated coverage of Surgery Partners with a Sector Weight rating as part of a broader research note launching coverage of Healthcare Services. The U.S. healthcare system requires significant efficiency gains and Healthcare Services will be at the epicenter of innovation, disruption, and opportunity, with near term proprietary hospital card data indicating that utilization remains strong in Q3 which represents a positive read for Hospitals and Post-Acute care, the analyst tells investors in a research note. For the company, the firm notes that while press reports suggest Surgery Partners is in discussions for a possible sale, it also believes that a neutral rating is appropriate as this plays out and with meaningful valuation upside from the stock’s current levels appearing “speculative”.