UPDATE: Bank of America Initiates Coverage on Surgical Care Affiliates with Buy Rating, $34 PT on Differentiated Growth Story

In a report published Tuesday, Bank of America analyst Kevin Fischbeck initiated coverage on

with a Buy rating and $34.00 price target. In the report, Bank of America noted, “We initiate Surgical Care Affiliates (SCAI), one of the largest outpatient surgery companies, with a Buy rating and $34 price objective. The unique partnership strategy, mid to high single-digit organic revenue growth and strong EBITDA margins warrant a premium multiple versus AMSG, the only other public ambulatory surgery center operator. Our $34 PO is based on 10.5x our 2015E EBITDA-NCI, essentially rolling forward its current 2014 multiple on to the 2015 EBITDA-NCI.” Surgical Care Affiliates closed on Monday at $28.88.