William Blair analyst Ryan Daniels has reiterated their bullish stance on ASTH stock, giving a Buy rating yesterday.
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Ryan Daniels has given his Buy rating due to a combination of factors surrounding Astrana Health’s recent acquisition and updated financial guidance. The company successfully closed its acquisition of Prospect Health at a reduced price, which is expected to enhance its financial performance. The acquisition is anticipated to contribute significantly to Astrana’s revenue and adjusted EBITDA, with management updating its full-year 2025 revenue guidance to a range of $3.1 billion to $3.3 billion, up from the previous $2.5 billion to $2.7 billion.
Additionally, Astrana Health aims to lower its net leverage ratio, indicating a focus on strengthening its financial position. The expected synergies from the acquisition, estimated between $12 million and $15 million over the next 12 to 18 months, further support the positive outlook. Management’s reaffirmation of its second-quarter guidance is seen as a positive indicator, reinforcing confidence in the company’s strategic direction and financial health.
According to TipRanks, Daniels is a 4-star analyst with an average return of 7.7% and a 48.84% success rate. Daniels covers the Healthcare sector, focusing on stocks such as Encompass Health, Evolent Health, and Addus Homecare.