BUZZ-Benchmark upgrades Select Medical to 'buy' on conservative forecast

Brokerage Benchmark upgrades hospital operator Select Medical SEM.N to "buy" from "hold"

Brokerage sets PT of $23 citing strong Q4 performance and conservative forecast due to upfront costs of accelerated inpatient rehab beds

Benchmark says SEM's focus on expanding its inpatient rehab unit, which has the highest margins, is expected to drive long-term profitability

"We think the long term acute care hospital (LTACH) could see a bit more improvement this year in terms of revenue with negotiated commercial contracts and increasing patient volume" - Benchmark

Median PT among 5 brokerages covering stock is $23 as per data compiled by LSEG

Stock down 5.9% YTD