Latest news with #ambulatorysurgery
Yahoo
15-07-2025
- Business
- Yahoo
Surgery Partners, Inc. (SGRY): A Bull Case Theory
We came across a bullish thesis on Surgery Partners, Inc. on by Shoe. In this article, we will summarize the bulls' thesis on SGRY. Surgery Partners, Inc.'s share was trading at $22.47 as of July 14th. SGRY's trailing and forward P/E were 2.69k and 35.59 respectively according to Yahoo Finance. An operating room with a doctor monitoring a patient's vital signs during surgery with a medical device. Surgery Partners (SGRY), a major player in the ambulatory surgery center (ASC) space, presents a compelling special situation investment driven by a high-probability takeout by Bain Capital, which already owns 39% of the company. After a failed sale process in 2024 and a non-binding $25.75 per share offer from Bain in January 2025, the odds favor a full acquisition. Despite the stock fading from initial highs due to market volatility and macro fears, fundamentals remain intact: ASCs are a secularly advantaged model lower-cost, efficient care delivery and favorable patient outcomes. Surgery Partners, as the last pure-play public ASC, enjoys mid-teens EBITDA CAGR through a mix of organic growth and M&A, with solid strategic positioning in orthopedics and cardiology. Valuation upside is real; historical EV/EBITDA multiples for similar takeouts (UNH/SCAI, THC/USPI) support the view that Bain may need to bump its bid. Given prior trades above the bid and historical data showing bumps in ~95% of minority buyouts, a revised offer around $28 isn't far-fetched. The stock trades near technical support, and downside is cushioned at $18.5–$19.25. Jefferies and Nomura estimate Bain could still achieve >17% IRR with a takeout at $30, suggesting room for competitive interest or a strategic rerating. Recent Bain transactions worth $2B underscore its capacity to execute despite tightened credit markets. With a likely resolution in the coming weeks, possibly aligned with the unusual Monday earnings schedule, a successful deal could yield 12–23% upside. Meanwhile, Surgery Partners' ASC platform continues to benefit from favorable healthcare trends and operational improvements. Previously, we covered a on Tenet Healthcare Corporation (THC) by BlackSwanInvestor in December 2024, highlighting its debt reduction and growth in Ambulatory Care. The stock has appreciated by ~38% since, driven by execution in its ASC strategy. Shoe shares a similar thesis but emphasizes Surgery Partners' pure-play ASC positioning and potential near-term buyout by Bain Capital. Surgery Partners, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held SGRY at the end of the first quarter which was 24 in the previous quarter. While we acknowledge the potential of SGRY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
17-06-2025
- Business
- Bloomberg
Ascension Health Expands Reach With $3.9 Billion Amsurg Deal
Ascension Health has agreed to buy AmSurg, an ambulatory surgery company once part of Envision Healthcare Corp., for about $3.9 billion, according to people with knowledge of the matter. The deal will add more than 250 outpatient surgery centers to Ascension's network in the US, where it is one of the biggest nonprofit health systems, as care moves toward lower-cost settings outside of traditional hospitals.
