Source: Alex Lavoie
Jefferies Upholds “Buy” Rating for Surgery Partners, Inc.
Despite the unfolding investigation involving potential claims on behalf of the investors of Surgery Partners, Inc. (NASDAQ: SGRY), Jefferies Financial Group continues to uphold a “Buy” rating for the healthcare services company. Surgery Partners operates surgical facilities across the United States, competing with other healthcare service providers in the industry. The company’s main focus is on delivering high-quality and cost-effective solutions for surgical procedures, and it is continually striving to expand its network and enhance its service offerings.
Investigation and Its Background
On March 4, 2026, Jefferies maintained its “Buy” rating for SGRY, with a “hold” action, when the stock was priced at $14.40. This decision comes amid an ongoing investigation being conducted by Johnson Fistel, PLLP into potential claims representing SGRY investors. The primary focus of the investigation is on the company’s executive officers and the potential recovery of investor losses under federal securities laws.
This investigation was initiated following SGRY’s financial disclosure on March 2, 2026. The disclosure revealed a full-year 2025 revenue of approximately $3.3 billion and an Adjusted EBITDA of $526.2 million. While the revenue exceeded expectations, the company’s profitability fell short.
Market Impact and Investor Response
The shortfall in profitability led to a 14.1% decline in share price after the Q4 2025 results were released. This drop in share price has led investors who suffered losses to consider joining the ongoing investigation. Despite this setback, the company’s overall performance and future potential led Jefferies to maintain its “Buy” rating.
Surgery Partners’ Operational Performance
Over the past few years, SGRY has been expanding its surgical facilities, which has resulted in increased revenue per case. However, the sale of assets has led to a decrease in total case volume, which has had a short-term impact on results. Despite these mixed profitability results, SGRY still trades at attractive EV/EBITDA and operating cash flow multiples compared to its peers, which supports Jefferies’ soft ‘buy’ upgrade.
Current Stock Market Position
As of now, SGRY’s stock is priced at $14.28, reflecting a 2.59% increase or $0.36. The stock’s trading range for the day has been between $13.74 and $14.65, with a market capitalization of approximately $1.85 billion. Over the past year, SGRY’s stock has seen a high of $24.64 and a low of $12.25, with a trading volume of around 1.74 million shares.
In conclusion, the ongoing investigation into potential investor claims has not deterred Jefferies from maintaining its “Buy” rating for Surgery Partners, Inc. Despite the short-term impact of asset sales on the company’s total case volume, the company’s commitment to providing high-quality, cost-effective surgical solutions and its attractive EV/EBITDA and operating cash flow multiples compared to industry peers provide a solid foundation for future growth. This, combined with the company’s efforts to expand its network and enhance its services, makes it a potentially attractive investment option, regardless of the current investigation.