Jefferies upgraded Pediatrix Medical to Buy from Hold with a price target of $14, up from $8. Pediatrix’s multi-year simplification effort has positioned the copay for a return to its roots as a hospital-based pediatrics business, the analyst tells investors in a research note. The firm believes the company “can recapture its place” as one of the best free cash flow stories in healthcare services. A “clean” balance sheet and “depressed” valuation could see free cash flow put toward share repurchase and accelerate earnings growth to double digits, driving a re-rating of the stock.
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