Barclays Maintains Equal Weight Rating on Surgery Partners (SGRY), Cuts PT

On May 27, Barclays analyst Andrew Mok CFA maintained an Equal Weight rating on Surgery Partners, Inc. (NASDAQ:SGRY) and reduced the price target to $24 from $25.

The rating update came after Surgery Partners, Inc. (NASDAQ:SGRY) reported mixed fiscal Q1 2025 results on May 12. The analyst told investors in a research update that while the company’s performance for the quarter showed effective physician recruitment and strong demand, factors such as rising unit costs and slower pricing growth demand a cautious approach.

A surgeon wearing gloves and a mask, performing a procedure in a well-equipped surgical facility.

Surgery Partners, Inc. (NASDAQ:SGRY) added around 150 new physicians to its facilities in fiscal Q1 2025, most of whom management expects to become partners eventually. Revenue for the quarter rose 8.2%, while adjusted EBITDA grew around 7%, supported by strong organic results. This included strong demand and same-facility revenue growth of more than 5%.

However, the company missed on earnings expectations in its fiscal Q1 2025 results, with reported EPS of $0.04 falling below the expected $0.08. Net loss attributed to the company in the quarter came up to $37.7 million. These contrasting trends led the analyst to slash the price target for Surgery Partners, Inc. (NASDAQ:SGRY).

Surgery Partners, Inc. (NASDAQ:SGRY) is a healthcare services company that provides surgical and related ancillary care solutions. Its operations are divided into the Surgical Facility Services, Ancillary Services, and Optical Services business segments.

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Disclosure: None.