Analysts at Goldman Sachs have relaunched coverage of AmSurg Corp. with a 'buy' rating and a price target of $101. That leaves almost 20 percent of upside from where the Nashville-based ambulatory surgery and physician services company (Ticker: AMSG) was trading in early Monday action.
Shares of Clarcor (Ticker: CLC) were up about 1 percent to $53.15 Monday morning after Barron's this weekend said the stock could rise 20 percent or more from its current beaten-up state. While acknowledging that demand is likely to remain weak through 2016, David Englander says "a focused strategy on growing the filter business and cutting costs could help drive up earnings and free cash flow, even on flattish revenue."
Hours after abandoning its audacious bid to buy TeamHealth, AmSurg has announced that its physician services division is acquiring a large anesthesiology practice in Phoenix. Valley Anesthesiology & Pain Consultants is home to about 280 doctors and allied care providers and works at 21 hospitals, 25 surgery centers and a number of doctors' offices in the Phoenix market.
Also still on the M&A path is long-term care provider Diversicare. The Brentwood-based company has paid $3.9 million for a 60-bed skilled nursing center in Fulton, Kentucky. The deal grows Diversicare's holdings to 12 in Kentucky and 55 in total.
AmSurg's headline-grabbing proposal to acquire Knoxville-based TeamHealth overshadowed its strong third-quarter earnings preview, said Avondale Partners analyst Paula Torch in a report late Tuesday.
The company beat analysts' expectations by a wide margin, posting estimated revenues for the third quarter of $650 million compared to $502 million the year prior. Adjusted net earnings were estimated to be $53.0 million compared to $34.6 million in the third quarter of last year. Adjusted earnings per diluted share are expected to be $1.03, compared to 69 cents.
"Given AMSG's stock is currently trading down 5 percent, we believe the merger proposal is overshadowing a strong earnings beat in 3Q," Torch wrote in her report.
AmSurg took its proposal to buy TeamHealth for $7.8 billion public Tuesday. TeamHealth rejected the plan, saying it undervalues the company. AmSurg shares (Ticker: AMSG) closed Tuesday trading down 4 percent at $74.88.
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.