Mizuho Downgrades Select Medical Holdings (SEM) to Neutral

Mizuho analyst Ann Hynes downgraded Select Medical Holdings (NYSE: SEM) from Outperform to Neutral with a price target of $16.50 (from $17.00).

The analyst comments "We are lowering our price target to $16.50, downgrading our rating to Neutral, and adjusting our 2026E-2028E estimates following the company's Q1:26 results and clearing of the antitrust waiting period. SEM is being taken private with the deal expected to close in mid-2026, pending shareholder approval. As a reminder, in March, SEM announced the company entered into an agreement to be acquired for $16.50 cash per share. At the time, the offer represented a 10% premium to the closing price on March 2. We estimate the take-out price implies an 8.7x multiple on our 2026E adjusted EBITDA, which we view as a fair multiple given the headwinds to the company's critical illness (LTCH) business, as seen in the Q1:26 results."

For an analyst ratings summary and ratings history on Select Medical Holdings click here. For more ratings news on Select Medical Holdings click here.

Shares of Select Medical Holdings closed at $16.44 yesterday.

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