UPDATE: Deutsche Bank Reiterates on Mednax Following Solid Q3 Results
In a report published Friday, Deutsche Bank analyst Darren Lehrich reiterated a Hold rating on Mednax (NYSE: MD), and raised the price target from $104.00 to $109.00.
In the report, Deutsche Bank noted, “Q3 results were mostly in-line with EPS $1.52 vs. guidance of $1.46-$1.51, but helped $0.06 from Medicaid parity payments. Solid same-unit (SU) pricing growth +4.1% helped drive SU rev +3.7% yoy despite soft vol trends at -0.4% yoy and SU NICU days -3.5% yoy. MD issued Q4 guidance in line with Street expectations. We believe MD's recently announced shelf filing could be a sign of larger M&A activity in the future. Maintain Hold on risk/reward, but raising est's as MD continues to execute well. PT moves to $109 (from $104) on 9.5x 2015E EV/EBITDA.”
Mednax closed on Thursday at $109.02.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.