Surgery Partners, Inc: BofA Conference Takes: Attractive end market, confident in long-term growth algo

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Surgery Partners, Inc: BofA Conference Takes: Attractive end market, confident in long-term growth algo

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Surgery Partners, Inc

BofA Conference Takes: Attractive end

market, confident in long-term growth algo

Maintain Rating: BUY | PO: 17.50 USD | Price: 14.31 USD

Continues to target LT mid-teens EBITDA growth 14 May 2026

We hosted a session with David Doherty, CFO of Surgery Partners (SGRY) at our Health Equity

Care Conference. The company is well-positioned to capture demand as more surgeries

Joanna Gajuk

are shifting to the ASC setting and reiterated LT growth algo of EBITDA growing mid- Research Analyst

teens (4-6% organic, 2-3% margin expansion, 4-6% deals). We maintain our Buy rating BofAS +1 646 855 3961

on the strong LT tailwind for ASCs while we expect reducing exposure to surgical joanna.gajuk@bofa.com

hospitals should improve balance sheet, cash flows and the valuation multiple. Kevin Fischbeck, CFA

Research Analyst

Progressing on reducing exposure to surgical hospitals BofAS+1 646 855 5948

SGRY is in discussions on deals related to three surgical hospitals. One is in advanced kevin.fischbeck@bofa.com

stages and will likely be announced in the summer. The goal is to refocus on ASCs while Joaquin Arriagada Martinez Research Analyst

reducing leverage (removing debt associated with surgical hospitals) and improving cash BofAS

flows (hospitals have higher capex, have leases). +1joaquin.arriagadamartinez@bofa.com646 855 1654

Guide assumes three problem hospitals stable in 2H26 KatieResearchFitzGeraldAnalyst

The company expects referral patterns to improve at hospitals that saw worse payor mix BofAS+1 646 556 2930

in 2H25. In addition, SGRY expects hiring and cost control across all hospitals to drive katie.fitzgerald@bofa.com

improvement.