Pediatrix Medical price target lowered to $10.50 from $12 at Truist

Truist analyst David MacDonald lowered the firm’s price target on Pediatrix Medical (MD) to $10.50 from $12 and keeps a Hold rating on the shares as part of a broader research note and outlook for FY24 among Healthcare Services names. Truist remains “broadly constructive” on core fundamentals across the group given “brisk sector tailwinds” around demand, the move to value-based care, and demographics, along with the group’s attractive positioning within segments and robust cash generation. The firm also notes that financial flexibility across much of the group should continue to underpin strong growth investment, M&A, and shareholder value creation, the analyst tells investors in a research note. Truist adds however that revenue cycle management is a key area of focus for the company following the termination of the service agreement with R1 (RCM) at the end of 2023.