Citi analyst Ralph Giacobbe downgraded Mednax to Neutral from Buy with a $29 price target. In a research note to investors, Giacobbe says he believes stabilization/turnaround efforts are taking longer to materialize, and come at a hefty cash expense, despite the company excluding "transformational" initiatives from operating earnings. While he sees "merits" to a potential LBO in the low $30s, he sees lower probability of a takeout in the near-term without visibility around balance billing legislation making it difficult to push valuation higher. Giacobbe also acknowledges Starboard's nomination of a majority board slate and possible proxy fight, but he feels structural pressures remain and will likely take time to improve irrespective of management.