Mizuho has commenced coverage on Select Medical Holdings (SEM, Financial), assigning the company an 'Outperform' rating and setting a target price of $25. The investment firm highlights Select Medical's robust position in the post-acute care market as a key factor in its favorable assessment.
The company's strategic initiatives in diversifying and accelerating its growth within inpatient rehabilitation services, combined with potential margin improvements in outpatient rehabilitation, are seen as pivotal elements driving positive earnings projections. Select Medical's attractive valuation and improved leverage profile further enhance its appeal as a long-term investment opportunity.
These factors contribute to a solid earnings visibility for Select Medical, according to Mizuho, making it an appealing prospect for investors looking for sustained growth within the healthcare sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Select Medical Holdings Corp (SEM, Financial) is $22.80 with a high estimate of $25.00 and a low estimate of $19.00. The average target implies an upside of 39.88% from the current price of $16.30. More detailed estimate data can be found on the Select Medical Holdings Corp (SEM) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Select Medical Holdings Corp's (SEM, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Select Medical Holdings Corp (SEM, Financial) in one year is $16.44, suggesting a upside of 0.86% from the current price of $16.3. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Select Medical Holdings Corp (SEM) Summary page.
