Addus Homecare, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Joanna Gajuk from Bank of America Securities maintained a Buy rating on the stock and has a $147.00 price target.
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Joanna Gajuk has given her Buy rating due to a combination of factors that highlight Addus Homecare’s promising growth trajectory. The company is expected to benefit from a significant rate update in Texas, which is anticipated to drive growth in the upcoming year. Additionally, management forecasts mid-to-high single-digit organic revenue growth, particularly in personal care, supported by rate increases in key states like Illinois and Texas.
Moreover, Addus Homecare is experiencing strong hiring momentum, with an increase in daily hires and stable turnover rates, which positions the company well for future expansion. The firm’s strategic focus on acquisitions, particularly in personal care, further strengthens its growth potential. Despite potential challenges such as decelerating rate updates and federal funding cuts, the company remains optimistic about its prospects, supported by its solid financial position and proactive management strategies.
Gajuk covers the Healthcare sector, focusing on stocks such as BrightSpring Health Services, Inc., Acadia Healthcare, and Brookdale Senior Living. According to TipRanks, Gajuk has an average return of 0.2% and a 49.78% success rate on recommended stocks.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $124.00 price target.