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UPDATE: Deutsche Bank Downgrades Mednax to Sell, Lowers PT

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In a report published Wednesday, Deutsche Bank downgraded its rating on Mednax (NYSE: MD) from Hold to Sell, and lowered its price target from $73.00 to $58.00.

Deutsche Bank noted, “We believe the investment case on MD could be challenged over the next 12 months against a backdrop of policy initiatives to reduce NICU utilization. Empirical evidence of NICU pressure is beginning to surface, yet we believe industry and government initiatives are accelerating in a manner that are likely to challenge MD's base business. The Sell rating underpins our view that: (1) Street estimates for 2013 are too high; (2) MD's trading multiple may slip if fundamentals become less certain; (3) anesthesia upside is already baked-into expectations; and (4) the market may assign only transient value to Medicaid rate parity (although a clear upside risk to 2013-2014 EPS).”

Mednax closed on Tuesday at $66.74.

Latest Ratings for MD

DateFirmActionFromTo
Oct 2015SunTrust Robinson HumphreyMaintainsNeutral
Sep 2015Mizuho SecuritiesInitiates Coverage onBuy
Sep 2015Mizuho SecuritiesInitiates Coverage onBuy

View More Analyst Ratings for MD
View the Latest Analyst Ratings

Posted-In: Deutsche BankAnalyst Color Downgrades Analyst Ratings

 

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