Goldman Sachs has downgraded Surgical Care Affiliates Inc SCAI to Neutral from Buy on valuation.
"While we believe SCAI is well positioned to continue benefiting from secular industry trends — including the shift from inpatient to outpatient and more integrated delivery of healthcare — we believe much of this upside is now 'priced in' at current levels," analyst Matthew Borsch wrote in a note.
Since being added to the Buy list on December 17, 2015, the analyst said shares rose +21 percent versus XLV -2 percent, SPX +2 percent and RUT +2 percent.
Borsch highlighted the company's focus on growth from complex spine/orthopedic procedures and appetite for exploring innovative partnerships with health plans and risk bearing medical groups.
The analyst maintains his 2016 EPS/revenue target of $2.16/$1.244 billion and reiterated his $48 price target on the stock.
At the time of writing, shares of Surgical Care Affiliates were down 4.21 percent at $46.44.
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