Morgan Stanley Sees Good Things Ahead for Surgical Care Affiliates

In a report published Friday, Morgan Stanley analyst Andrew Schenker reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “SCAI issued 2014 Adjusted EBITDA-NCI guidance of $154M to $158M, which was in-line with MS and consensus at $154M and $155M, respectively. Guidance is adjusted for the adverse impact of weather on 1Q performance. We view initial guidance as achievable, as SCA should drive growth through accelerating contributions from its health system partnerships and consolidation. Specifically, we model $82M and $5.9M in acquisition revenue from SCA's consolidated and non-consolidated facilities, respectively in 2014.” Surgical Care Affiliates closed on Thursday at $30.73.