Amedisys Hold Rating: Mixed Performance and Cost Pressures Amid Regulatory Uncertainties

Ryan Langston, an analyst from TD Cowen, maintained the Hold rating on Amedisys (AMED – Research Report). The associated price target remains the same with $101.00.

Ryan Langston has given his Hold rating due to a combination of factors impacting Amedisys’s financial performance. The company’s recent quarterly results fell short of both consensus estimates and the firm’s own projections, particularly in terms of adjusted EBITDA and EPS. This shortfall was attributed to higher-than-expected costs, including an elevated cost of service revenue ratio and general and administrative expenses.
Additionally, while there was some growth in certain segments like hospice revenue, the overall performance showed mixed results with a decline in home health agency EBITDA. The forward-looking estimates reflect a cautious approach, assuming a continuation of current operating trends with modest revenue growth but pressure on EBITDA margins. The lack of formal guidance and potential regulatory challenges, such as reimbursement rate issues, also contribute to the Hold rating, as these factors may continue to affect the company’s financial outlook.