Surgery Partners (SGRY) Stock Forecast & Price Target

Surgery Partners Inc is projected to achieve revenue growth of approximately 8%, with anticipated figures ranging from $3.3 billion to $3.45 billion. Additionally, the company expects adjusted EBITDA to reach between $555 million and $565 million, marking a 10% increase at the midpoint and a margin of 16.6%, which reflects a 30 basis point improvement. These metrics suggest that Surgery Partners is well-positioned to maintain strong financial performance and potentially achieve double-digit growth in adjusted EBITDA moving forward.

Surgery Partners Inc. faces challenges stemming from elevated integration costs due to last year's above-normal mergers and acquisitions, which may negatively affect margins in the first half of the upcoming period. Despite the potential for slight positive effects from proposed Medicare site neutral payments, the company remains heavily reliant on revenue from contracts for healthcare services with an insignificant portion tied to Medicaid, limiting its growth prospects. Additionally, its current valuation appears to be at the low end of its five-year range, suggesting that it may be undervalued relative to its competitors in the alternate site provider sector.