Story updated at 9:50 a.m. to reflect market activity.
Shares of Mednax gained 2.6% to $63.61 in morning trading.
The bank raised its price target for the company to $73 from $57. Deutsche Bank analysts believe the company can deliver high organic growth.
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Separately, TheStreet Ratings team rates MEDNAX INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate MEDNAX INC (MD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, growth in earnings per share, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 10.3%. Since the same quarter one year prior, revenues rose by 20.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 38.25% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- MEDNAX INC has improved earnings per share by 18.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MEDNAX INC increased its bottom line by earning $2.78 versus $2.42 in the prior year. This year, the market expects an improvement in earnings ($3.14 versus $2.78).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Health Care Providers & Services industry average. The net income increased by 19.5% when compared to the same quarter one year prior, going from $66.10 million to $78.97 million.
- Net operating cash flow has increased to $138.62 million or 30.82% when compared to the same quarter last year. In addition, MEDNAX INC has also vastly surpassed the industry average cash flow growth rate of -26.50%.
- You can view the full analysis from the report here: MD Ratings Report