William Blair analyst Ryan Daniels has maintained their bullish stance on ADUS stock, giving a Buy rating on April 23.
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Ryan Daniels has given his Buy rating due to a combination of factors that highlight the strong performance and potential of Addus Homecare. The company reported robust first-quarter results, with revenue and adjusted EBITDA closely aligning with market expectations. The revenue reached $338 million, marking a 20% year-over-year organic growth, which was slightly below the consensus estimate of $340 million but still indicative of solid performance.
A significant driver of this growth was the personal care segment, which saw same-store revenue growth of 7.4%, surpassing management’s target range of 3% to 5%. This segment benefited from increased volume and favorable rate adjustments, such as the 5.5% rate increase in Illinois. Additionally, the company’s gross margin and adjusted EBITDA margin showed positive trends, with the latter expanding by 40 basis points year-over-year. These factors, combined with adjusted EPS outperforming the Street estimate, underscore a strong demand environment for home-based care services, supporting the Buy rating.
Daniels covers the Healthcare sector, focusing on stocks such as Encompass Health, Health Catalyst, and Addus Homecare. According to TipRanks, Daniels has an average return of 7.7% and a 49.56% success rate on recommended stocks.
In another report released on April 23, Jefferies also maintained a Buy rating on the stock with a $160.00 price target.