UBS Starts Surgery Partners (SGRY) at Buy

UBS analyst AJ Rice initiates coverage on Surgery Partners (NASDAQ: SGRY) with a Buy rating and a price target of $38.00.

The analyst comments: "Surgery Partners offers attractive organic growth and a strong pipeline of inorganic growth opportunities. Investor concern about PE ownership (currently ~40% of outstanding shares) has created an overhang for the stock following a secondary offering in December 2023. We believe that this dynamic creates an attractive entry point, as the company now trades two turns below its five-year historical average multiple of 13.4x (on an EV/EBITDA basis) despite continuing to deliver strong year-over-year growth. Surgery Partners has consistently grown at a mid-teens adj. EBITDA growth rate (we think the stock is pricing in closer to 10-12% growth), which we believe is sustainable over the medium to longer term given secular tailwinds that should play out over the next 3-5 years as the U.S. population ages and more medical procedures shift toward ambulatory settings."

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 $30.46 yesterday.

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