Benchmark Reiterates Buy Rating on Surgery Partners (SGRY)

Benchmark analyst Bill Sutherland reiterated a Buy rating and $35.00 price target on Surgery Partners (NASDAQ: SGRY).

The analyst commented, "Surgery Partners reports 1Q results premarket on May 12. We continue to believe SGRY’s 2025 guidance issued in early March represents a conservative initial outlook, which we think is appropriate given the shifting macroeconomic backdrop and pressures on consumer confidence. Last week, United Health (UNH-NR) reported a 1Q miss that, for a number of factors, saw the cost trend elevated by higher specialty care, which could be a positive indicator for SGRY’s case volumes. However, we think a lingering impact of elevated integration costs from last year’s above-normal M&A could impact margins in 1H. Consequently, we are reweighting our quarterly AEBITDA cadence slightly to the back half, as detailed below. Overall, we believe SGRY remains positioned to sustain double-digit Adj EBITDA growth. We reiterate our $35 PT, which implies EV/EBITDA (’25) of 12.9x, at the low end of a five-year range, a discount to the median valuation for a comp group of alternate site providers, and a discount to prior acquisitions of scaled network providers."

For an analyst ratings summary and ratings history on Surgery Partners click here. For more ratings news on Surgery Partners click here.

Shares of Surgery Partners closed at $21.22 yesterday.

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