Surgery and physician services company AmSurg is moving up the ranks of Standard & Poor's. The stock index compilers on Wednesday said the Burton Hills-based company will jump from the SmallCap 600 to the MidCap 400 on the afternoon of Oct. 14. Shares of AmSurg (Ticker: AMSG) rose more than 1 percent after hours Wednesday, adding to the nearly 3 percent gain from the regular session. Year to date, they're up almost 50 percent.
The team at local investment bank Avondale Partners has added AmSurg shares to its conviction list. Analyst Paula Torch says the company is having great success working its Sheridan anesthesia into its surgery centers, which is driving both the top line and profitability. She has lifted her EBITDA margin forecast to 19.1 percent from 18.8 percent and her EPS estimate to $4.15 from $4.00. And that's without the expected (and maybe more unexpected) M&A activity.
We believe there are plenty of deals to go around and the development team will go after what fits and what is financially sound. [...] In our view, while AMSG will likely strike on a deal that makes sense for them across their various service lines, we continue to anticipate more deals in anesthesia, radiology, and children's services, but believe there is appetite for ED deals if they become available.
Torch also has raised her price target for AmSurg (Ticker: AMSG), which closed last week's trading at $82.71, to $94 from $90. Her call comes less than two months after she hiked her price target all the way from $74.
Analyst Sarah James has formally begun covering shares of Nashville's big three hospital operators as well as other prominent health care players. She rates both HCA Holdings and Community Health Systems at 'outperform,' saying investors will benefit from, among other things, the growth of HCA's Parallon support services unit and CHS' potential for margin expansion. James isn't as bullish on the prospects of LifePoint Health, which she has given a 'neutral' rating.
Over at Goldman Sachs, analysts have launched coverage of Amsurg with a 'buy' rating and $81 target. That's 17 percent above where AmSurg (Ticker: AMSG) closed Wednesday trading.
Avondale Partners analyst Paula Torch has raised her price target for Nashville-based AmSurg to $74 from $69.
The firm has maintained its 'market outperform' for the company, saying its raised guidance for revenues in a range of $2.46 billion to $2.48 billion could be conservative.
"[AmSurg] is executing on its JV partnerships, cross-selling initiatives, and we believe the pipeline for acquisitions remains plentiful," Torch said in a report issued Wednesday.
Shares of AmSurg (Ticker: AMSG) were up to $64.75 Thursday morning. Year to date, they've climbed 18 percent.