UPDATE: Citigroup Cuts PT to $80 on Mednax; Q1 Miss on Slow Acquisition Pace
Citigroup lowers its price target on Buy-rated Mednax (NYSE: MD) from $83 to $80 following Q1 results.
Citigroup says, "MD's slow YTD acquisition pace drove 1Q12 results and 2Q12 guidance below our previous estimates. We are lowering our forward EPS estimates by approximately 3-4% and lowering our 12-month price target from $83 to $80, on the back of these changes. Our estimates include no possible benefit from MDCD parity legislation. Our 2012 acquisition assumptions are half of guided acquisition spend of $300m. We model only the frequent neonatal acquisitions, we do not model any potential, unannounced anesthesia acquisitions."
MD closed at $65.38 on Monday.
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