Surgery Partners (SGRY) PT Lowered to $22 at Mizuho

Mizuho analyst Ann Hynes lowered the price target on Surgery Partners (NASDAQ: SGRY) to $22.00 (from $28.00) while maintaining a Outperform rating.

The analyst comments "We are reducing our estimates for SGRY to account for the lower than expected performance, lower earnings visibility due to payer mix pressure, and to remove M&A from our forecasts. We are reducing our 2025E-2027E adjusted EBITDA estimates by -4%, -12%, and -16%, respectively. Our new estimates assume no unannounced M&A and the continuation of Q3:25 payer mix trends, both which could prove conservative. Our $22 price target yields a multiple of 11.0x our 2026E adjusted EBITDA as compared to SGRY's ten-year low trading average of 14.0x. Though the payer mix and volume pressures reduce earnings visibility, we believe our new estimates reflect that risk. As a result, we are maintaining our Outperform rating."

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