Wells Fargo initiates Mednax (MD -0.2%) at Market Perform (PT $92). "The company is poised to benefit from a rebound in a cyclically low birth rate," says analyst Gary Lieberman, adding that Medicaid Parity "could add $0.28-0.47 in EPS" going forward.
Mednax (MD +4.4%) says it's acquired Anesthesiologists Associated, a private physician group practice in Tennessee that provides anesthesia services, and Pediatric Surgical and Associates, a pediatric surgery physician group practice in North Texas. The due diligence process for both acquisitions has already been conducted over the last several months, so both acquisitions closed just under the wire on December 31, 2012.
Mednax (MD +1.5%) moves up on the back of yesterday's solid Q3 results and an upgrade to Hold from Sell at Deutsche Bank. Deutsche cites the better numbers, plus improving NICU volumes and stronger margins The firm ups its price target to $76 from $65.