Send to a Friend Share

Citi Maintains 'Buy' on Pediatrix Medical Group (PDX), Drops Price Target

October 2, 2008 10:29 AM EDT
PDX Hot Sheet
Rating Summary:
    0 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 25 | Down: 12 | New: 36
Citi maintains a 'Buy' on Pediatrix Medical Group Inc (NYSE: PDX), lowers price target from $66 to $55.

Citi analyst says, "PDX lowered 3Q08 EPS guidance by 3-4c (3.5-4.5%) due to adverse payor mix shift that began in August (implies a 100-200bp shift). We believe this mix shift will continue as long as unemployment is rising (particularly CA, FL & TX) and have revised our forward estimates lower to reflect such a trend...We are lowering 2009 from $3.65 to $3.40 to reflect the recent payor mix shift + an additional 100bp deterioration in 2009 and a 2% decline in SS NICU volumes. We believe this constitutes a reasonable worst-case scenario."

Pediatrix Medical Group, Inc. (Pediatrix) is a healthcare services company that focuses on physician services for newborn, maternal-fetal, pediatric subspecialty and anesthesia care.

You May Also Be Interested In


Related Categories

Analyst Comments

Related Entities

Citi

Add Your Comment





Follow StreetInsider.com On Twitter