Medical Facilities Receives a Buy from TD Securities

By Jason Carr

The Healthcare company, Medical Facilities (TSX: DR), has received a rating update from a Wall Street analyst yesterday. The company received a Buy rating from TD Securities’ analyst Lennox Gibbs, with a C$21 price target.

Gibbs noted:

“We are trimming our target price to reflect reduced transparency and visibility regarding the sudden departure of Mr. Reynolds. Nonetheless, we are flagging Medical Facilities’ deep bench strength as a positive mitigating factor in the current context.”

According to, Gibbs is a 1-star analyst with an average return of -2.4% and a 26.9% success rate. Gibbs covers the Healthcare sector, focusing on stocks such as Merus Labs International, Concordia Healthcare, and Valeant Pharma.

Medical Facilities has an analyst consensus of Moderate Buy, with a price target consensus of C$19.88.

Medical Facilities’ market cap is currently C$455.8M and has a P/E ratio of 24.

Medical Facilities Corp. owns and controls interests in five specialty surgical hospitals located in South Dakota, Arkansas and Oklahoma, as well as an ambulatory surgery center in California. The company’s specialty hospitals perform scheduled surgical, imaging, diagnostic and other procedures, including primary and urgent care. Its ambulatory surgery centers specialize in outpatient surgical procedures, with patient stays of less than 24 hours. Medical Facilities was founded on January 12, 2004 and is headquartered in Toronto, Canada.

The company’s shares closed last Wednesday at $14.68, close to its 52-week low of $14.64.