Benchmark upgrades Select Medical to 'buy' on conservative forecast

Select Medical Holdings

24/02/2025 18:23

** Brokerage Benchmark upgrades hospital operator Select
Medical  SEM.N  to "buy" from "hold" 
    ** Brokerage sets PT of $23 citing strong Q4 performance and
conservative forecast due to upfront costs of accelerated
inpatient rehab beds 
    ** Benchmark says SEM's focus on expanding its inpatient
rehab unit, which has the highest margins, is expected to drive
long-term profitability 
    ** "We think the long term acute care hospital (LTACH) could
see a bit more improvement this year in terms of revenue with
negotiated commercial contracts and increasing patient volume" -
Benchmark 
     ** Median PT among 5 brokerages covering stock is $23 as
per data compiled by LSEG 
    ** Stock down 5.9% YTD
    

 (Reporting by Padmanabhan Ananthan)
 ((Padmanabhan.Ananthan@thomsonreuters.com;))