Zacks Investment Research downgraded shares of AmSurg Corp. (AMSG) from OUTPERFORM to NEUTRAL on September 23, 2014, with a target price of $53.00.
AmSurg's second-quarter 2014 adjusted EPS of $0.63 increased 8.6% year over year but missed the Zacks Consensus Estimate by $0.01. It coincided with the upper end of the guidance range. Revenues increased 5.2% year over year but failed to meet the estimate. Improved average revenues per procedure and increase in same-center revenues were encouraging. Furthermore, the Sheridan Healthcare acquisition, paving its way into the huge and fast-growing fragmented physician outsourcing market, is expected to be a material upside. Nonetheless, headwinds like reduction in workers' compensation reimbursement, sequestration and increased interest expense are intimidating. We are thus Neutral on AmSurg.
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