Richard Close, an analyst from Canaccord Genuity, maintained the Buy rating on AdaptHealth (AHCO – Research Report). The associated price target remains the same with $14.00.
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Richard Close has given his Buy rating due to a combination of factors that highlight AdaptHealth’s potential for growth and resilience in the market. The company reported a steady quarter with revenue surpassing previous expectations, and the adjusted EBITDA margin remained consistent. Notably, the impact of tariffs is anticipated to be minimal, thanks to exemptions for medical devices used in chronic disease treatment, which provides stability for future financial performance.
Furthermore, the Diabetes segment showed promising signs of improvement, with sequential growth in new starts and a reduction in attrition rates, marking the best performance in two years. The Respiratory segment also exceeded expectations due to a severe flu season, achieving a record number of patients. Although the Sleep segment underperformed, management has implemented strategies to address these challenges. Overall, the combination of manageable tariff impacts, progress in the Diabetes segment, and potential new contracts supports a positive outlook, justifying the Buy rating with a price target of $14.
AHCO’s price has also changed moderately for the past six months – from $10.180 to $8.850, which is a -13.06% drop .