In a report released today, Ryan Langston from TD Cowen maintained a Buy rating on Surgery Partners (SGRY – Research Report), with a price target of $28.00.
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Ryan Langston has given his Buy rating due to a combination of factors that indicate positive future prospects for Surgery Partners. Despite a slight revenue miss, the company posted an adjusted EBITDA in line with consensus expectations, and management remains optimistic about margin expansion by 2025. The company’s same-store case growth exceeded expectations, suggesting operational strength, even though revenue per case saw a slight decline due to a shift towards a higher gastrointestinal mix.
Management’s reiteration of their 2025 guidance, with anticipated adjusted EBITDA growth and net revenue increases, further supports the Buy rating. Additionally, the company is expected to benefit from operational execution, revenue cycle management advancements, and procurement initiatives, which should help expand margins. The firm’s strategic positioning and insulation from tariff impacts also contribute to a favorable outlook, making the stock an attractive buy for investors.