Pediatrix Medical initiated with a Neutral at UBS

UBS analyst AJ Rice initiated coverage of Pediatrix Medical with a Neutral rating and $9.50 price target. Pediatrix is likely to continue to be challenged by labor inflation outgrowing a structurally challenged top-line, the analyst tells investors in a research note. The termination of the agreement with R1 could result in overlapping vendor costs during the transition, but UBS believes the negativity is priced in at the low multiple and waits on the sidelines to see how the company executes through this transition.