0735 ET - Surgery Partners' reduced 2024 free cash flow outlook and a hiccup in 3Q same-facility revenue growth roused investor concerns that are looking excessive at this point, Benchmark analyst Bill Sutherland says in a research note. The company's stock has fallen nearly 40% since its 3Q report last month, but the free cash flow guidance was primarily impacted by Surgery Partners opportunistically deploying about $340 million for M&A, the analyst says. And entering 2025, the company's same-facility revenue growth algorithm, combined with higher M&A, should drive double-digit revenue growth, Sutherland says, maintaining a buy rating on the stock. (dean.seal@wsj.com)
(END) Dow Jones Newswires
December 26, 2024 07:35 ET (12:35 GMT)
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