Pediatrix Medical price target lowered to $8 from $10 at Truist

Truist lowered the firm’s price target on Pediatrix Medical to $8 from $10 and keeps a Hold rating on the shares as part of a broader research note previewing Q2 results in Healthcare Services. The sector offers “attractive core demand drivers”, ongoing M&A opportunity, and strong relative positioning, and while “ongoing selectivity” remains important, the firm remains bullish on the group’s long-term drivers – demographics, move to value-based care, and site of service redirection – underpinning its solid growth, the analyst tells investors in a research note. For the company, Truist sees investors focus on not only core trends but the recently announced accelerated portfolio restructuring plan which calls for exiting a meaningful number of underperforming office-based practices in 2024.