AdaptHealth’s Strategic Divestitures and Strong Financial Performance Justify Buy Rating

Leerink Partners analyst Whit Mayo has reiterated their bullish stance on AHCO stock, giving a Buy rating yesterday.

Whit Mayo has given his Buy rating due to a combination of factors including AdaptHealth’s strategic asset divestitures and its financial performance. Despite a slight reduction in the revenue and EBITDA guidance for 2025, the company’s recent asset sales, particularly in the Wellness at Home segment, demonstrate a focused approach towards optimizing its core operations.
Furthermore, AdaptHealth’s first-quarter revenue exceeded expectations, showcasing resilience in its business model. Although there was a slight decline in EBITDA and earnings per share fell short of estimates, the overall financial health of the company remains solid. These elements collectively contribute to Mayo’s positive outlook on AdaptHealth’s stock.