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UPDATE: Stifel Nicolaus Initiates Buy with $72 PT on Mednax; Valuation Attractive

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Stifel Nicolaus initiates its coverage on Mednax (NYSE: MD) with a Buy rating and a $72 price target.

Stifel Nicolaus comments, "We like the company's prospects for internal growth and acquisitions of neonatology and anesthesiology practices, and view the current valuation, at only the 14th percentile of historical forward P/E, as an attractive entry point. …Our Buy rating is based on an improving internal growth rate, an increasing pace of accretive acquisitions, and a current valuation well below the median (since 2004) forward P/E of 15.1x. The current valuation is at only 14th historical percentile. Our target price of $72, equal to a median multiple applied to our forward EPS estimate, implies 20% price appreciation."

MD closed at $60.01 on Monday.

Latest Ratings for MD

DateFirmActionFromTo
Oct 2014CitigroupMaintainsBuy
Oct 2014BairdInitiates Coverage onOutperform
Sep 2014SunTrust Robinson HumphreyInitiates Coverage onNeutral

View More Analyst Ratings for MD
View the Latest Analyst Ratings

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