TD Cowen upgrades Surgery Partners on ‘still-reasonable growth valuation’

TD Cowen upgraded Surgery Partners to Outperform from Market Perform with a price target of $35, down from $39. The firm says it has “patiently waited for an opportunity” to recommend the shares at what it deems a “still-reasonable growth valuation.” The analyst expects ambulatory surgery centers tailwinds to continue and says Surgery Partners has “demonstrated thoughtful execution.” ASCs “continue to gain market share as payors seek to incentivize physicians and patients towards lower-cost surgical settings, the analyst tells investors in a research note. In addition, ASCs treat a less-comorbid patient population than hospitals, meaning obesity drugs should not materially affect their eligible patient base, contends TD.