In a challenging year for Surgery Partners Inc (NASDAQ:SGRY), the company's stock has touched a 52-week low, dipping to $19.87, with InvestingPro data showing the stock trading significantly below analyst target ranges of $28-$50. This latest price level reflects a significant downturn from the previous year, with the stock experiencing a 1-year change of -37.98%. Despite the challenging price action, the company maintains solid operational metrics, with revenue growth of nearly 10% and EBITDA of $595.9M. Investors have been closely monitoring the stock as it navigates through a period marked by volatility and uncertainty within the healthcare sector. The 52-week low serves as a critical indicator for the company's performance and investor sentiment, as Surgery Partners continues to adapt its business strategy in a rapidly evolving industry landscape. According to InvestingPro analysis, the stock appears slightly undervalued at current levels, with additional insights available in the comprehensive Pro Research Report, part of InvestingPro's coverage of over 1,400 US stocks.
In other recent news, Surgery Partners has been a subject of interest for several financial firms. BofA Securities upgraded Surgery Partners' rating to Buy, citing industry tailwinds and a relatively low valuation. Despite a reduction in the stock's price target to $35, RBC Capital maintained an Outperform rating, expressing confidence in the company's growth strategy. TD Cowen also adjusted their price target for the company to $32, but retained a Buy rating.
Jefferies revised its price target for Surgery Partners downward to $40, maintaining a Buy rating on the stock. The firm cited investor dissatisfaction regarding the company's free cash flow and the absence of a company sale announcement as factors for the adjustment. Barclays (LON:BARC) also adjusted its outlook on Surgery Partners, reducing its price target from $32.00 to $31.00, maintaining an Equalweight rating due to financial challenges faced by the company throughout the year.
In terms of financial performance, Surgery Partners reported a robust third quarter with net revenue climbing 14% year-over-year to $770 million and adjusted EBITDA rising by 22% to $128.6 million. The company's successful recruitment of over 230 new physicians and a 53% increase in total joint replacements contributed to these positive results. These recent developments highlight Surgery Partners' ability to navigate financial and operational challenges while maintaining a strong position in the healthcare services sector.
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