Truist Lifts PT on Pediatrix Medical Group (MD) to $23 From $21 – Here’s Why

Pediatrix Medical Group, Inc. (NYSE:MD) is one of the most undervalued small cap stocks to buy right now. On April 13, Truist lifted the price target on Pediatrix Medical Group, Inc. (NYSE:MD) to $23 from $21, reiterating a Hold rating on the shares.

The rating update came as part of a broader research note previewing fiscal Q1 results in Healthcare Services, or HC. The firm told investors in a research note that it is continuing to remain broadly bullish on the stocks in its HC Services coverage universe, tied to factors such as a more favorable/stable reimbursement backdrop, continued strong demand trends, and overarching secular tailwinds. It also sees the recent Final Medicare Advantage Rule as an “encouraging data point”.

The firm further stated that it continues to believe that the sector is well-positioned, given that it is domestic, scaled, and defensive, adding that the group is also a beneficiary of AI/automation/interconnectivity. In addition, strong free cash flow and attractive financial flexibility are supporting the ongoing growth, investment/M&A/shareholder friendly initiatives.

Pediatrix Medical Group, Inc. (NYSE:MD) provides physician services, including neonatal care, maternal fetal care, and other pediatric subspecialty care.

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