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Research Alert: CFRA Reiterates Hold Opinion On Shares Of Mednax, Inc.

05/10/2021 06:27

10:25 AM EDT, 05/10/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target price to $35 from $30 on an enterprise value of 13.0x our 2022 EBITDA estimate, a premium to MD's historical forward average. We narrow our 2021 EPS estimate to $1.36 from $1.66 and our 2022 estimate to $1.54 from $1.80. MD reports Q1 EPS of $0.24 vs. $0.32, beating the S&P Capital IQ consensus estimate by $0.10. Revenue exceeded market expectations by nearly 5% driven by growth in same-unit revenue primarily related to funds received under the CARES Act, modest improvements in managed care contracting, increases in contract and administrative fees, as well as an approximately 110 basis point increase in the percentage of services reimbursed by commercial and other non-government payors, slightly offset by net acquisition activity. We see future growth aided by the vaccine roll-out as well as small acquisitions (including two physician groups for $6 million in the quarter).