Jefferies Has Bullish View on AmSurg (AMSG) Post Q1; PT Raised to $76

Jefferies maintains a Buy rating for AmSurg (NASDAQ: AMSG) and raises the price target to $76 (from $68). It is believed that the earnings and growth that came along with the recent acquisition of Sheridan, along with ongoing improvements, will drive multiple expansions over the next 12 months.

Jefferies analyst Brian Tanquilut said, "We also expect AMSG's aggressive acquisition strategy in the physician services space to drive incremental upside surprises in the coming quarters. Strong FCF generation is another unappreciated key positive."

He also added, "SS revenue growth of +3.6% from the ASC unit was the best result for this metric since 2008, and mgmt. demonstrated confidence in its improving growth trajectory in the segment by raising its SS revenue guidance for the year. AMSG also signed a new surgery center JV partnership during the quarter, resulting in 2 additional unconsolidated facilities under the AMSG flag. We believe ASC JVs represent a new avenue for growth as the company works to expand its relationships with health systems."

For an analyst ratings summary and ratings history on AmSurg click here. For more ratings news on AmSurg click here.

Shares of AmSurg closed at $62.54 yesterday.

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