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Pediatrix Medical Group (NYSE: MD) shares climbed nearly 5% following an upgrade from Jefferies, which raised the rating from “Hold” to “Buy” and increased the price target from $8 to $14. Jefferies believes Pediatrix Medical is positioned to “recapture its place” as a top performer in free cash flow within healthcare services.
Jefferies analyst Jack Slevin noted that while the company is no longer the growth-driven entity it was in the early 2000s, its multi-year simplification efforts have repositioned Pediatrix to focus on its core hospital-based pediatrics business. With a clean balance sheet and a current valuation of around 7x PE, the company could potentially use free cash flow for share repurchases, accelerating EPS growth and driving re-rating potential.
As of 11:09 AM, Pediatrix Medical shares were trading at $10.99, up 4.57%.
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