Stifel Resumes Mednax (MD) at Hold
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Stifel analyst Tao Qiu resumes coverage on Mednax (NYSE: MD) with a Hold rating and a price target of $30.00.
The analyst commented, "We are resuming coverage of MEDNAX (MD) with a Hold rating and $30 target price. We believe the company’s dominant market share in neonatal ICU (NICU) and maternal fetal medicine gives it an edge in acquiring physician practices and expanding into other pediatrics and obstetrics adjacencies. Dispositions of MedData, radiology and anesthesiology businesses are expected to improve margin and reduce earnings volatility. Under new management, we expect the company to stabilize organic growth and pursue tuck-in acquisitions at a more measured pace, leading to mid-single digit revenue growth and double-digit EBITDA growth if margin could return to the 20% level. With recent sales and debt repayment, leverage is moderate and MEDNAX can fund acquisitions with strong operating cash flow. At current levels, we think the risk/reward is balanced given the 95% return from 4Q20 vs 59% of the S&P Small Cap 600 Index."
Shares of Mednax closed at $31.68 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
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