Jefferies lifts Surgery Partners price target to $17 on strong Q1 performance
Surgery Partners posted 4.5% year-over-year revenue growth in fiscal Q1 2026, prompting Jefferies to raise its valuation estimate despite sector-wide weather headwinds.
Jefferies has increased its price target for Surgery Partners to $17 from $15, maintaining a Buy rating on the shares following the company’s fiscal first quarter 2026 results. The analyst firm cited robust financial performance from the healthcare services provider, noting that the results were delivered despite weather-related headwinds that impacted most competitors in the sector.
The upgrade follows Surgery Partners’ report on May 5, which showed revenue grew 4.5% year-over-year. Same-facility revenue also increased by 4.4%, while same-facility cases rose by 0.6% during the period. The company reported an adjusted EBITDA of $102.3 million, offsetting a net loss attributable to the company of $35.9 million for the fiscal quarter.
Jefferies highlighted that payor mix issues, which had emerged in the previous quarter, moderated during the first quarter. The firm indicated that these issues are expected to continue improving gradually throughout the remainder of the year, supporting the positive outlook for the surgical services provider.
In conjunction with the quarterly results, Surgery Partners reaffirmed its full-year 2026 guidance. The company projects revenue to fall between $3.35 billion and $3.45 billion, with adjusted EBITDA expected to be at least $530 million for the fiscal year.
Surgery Partners operates as a healthcare services holding company providing solutions for surgical and related ancillary care. Its business is segmented into Surgical Facility Services, Ancillary Services, and Optical Services, supporting physicians and patients across the United States.
