In a report released yesterday, Brian Tanquilut from Jefferies maintained a Buy rating on Addus Homecare (ADUS – Research Report), with a price target of $160.00.
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Brian Tanquilut has given his Buy rating due to a combination of factors that position Addus Homecare favorably in the current market environment. The management’s outlook on Medicaid changes is optimistic, viewing the proposed adjustments as having minimal impact on the company. Additionally, the favorable rate environment is expected to continue benefiting Addus through 2026, with recent rate increases already pushing revenue growth above the company’s target.
Management’s execution in the core personal care services business is another positive factor, driven by improvements in labor and technological initiatives. The company’s focus on mergers and acquisitions, particularly in strategic markets with favorable rate environments, further supports the Buy rating. These efforts are expected to enhance service delivery, sustain momentum in volume and revenue growth, and provide opportunities for expansion in key states.
In another report released on May 15, RBC Capital also maintained a Buy rating on the stock with a $133.00 price target.