William Blair analyst Ryan Daniels has maintained their bullish stance on MD stock, giving a Buy rating on October 29.
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Ryan Daniels has given his Buy rating due to a combination of factors that highlight Pediatrix Medical Group’s strong financial performance and strategic improvements. The company’s third-quarter results surpassed market expectations, with sales and adjusted EBITDA significantly higher than consensus forecasts. This strong performance is attributed to the company’s strategic exit from noncore operations, which has allowed it to focus on higher acuity cases and benefit from favorable reimbursement trends.
Additionally, Pediatrix has raised its full-year profit outlook, projecting a higher adjusted EBITDA than previously anticipated. The company is also experiencing continued strength in same-store growth, driven by improvements in collection activities, increased patient acuity in neonatology, and a more favorable payer mix. These operational metrics, alongside a 7.6% increase in same-unit revenue from reimbursement-related factors, support the positive outlook and justify the Buy rating.
Daniels covers the Healthcare sector, focusing on stocks such as Idexx Laboratories, TransMedics Group, and Addus Homecare. According to TipRanks, Daniels has an average return of 8.5% and a 50.31% success rate on recommended stocks.
In another report released on October 29, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $18.50 price target.