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Balanced Outlook: U.S. Physical Therapy’s Strong Earnings and Pricing Challenges Justify Hold Rating

Balanced Outlook: U.S. Physical Therapy’s Strong Earnings and Pricing Challenges Justify Hold Rating

William Blair analyst Ryan Daniels has maintained their neutral stance on USPH stock, giving a Hold rating on July 31.

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Ryan Daniels has given his Hold rating due to a combination of factors influencing U.S. Physical Therapy’s current performance. The company reported strong second-quarter earnings, with revenue surpassing expectations by a modest margin, driven by solid volume trends and recent acquisitions. Despite the positive revenue growth, the net rate per visit fell slightly short of the projected model, indicating some challenges in pricing dynamics.
Additionally, while the Industrial Injury Prevention segment showed impressive growth, the overall revenue from mature clinics remained relatively flat. The company did increase its adjusted EBITDA guidance, reflecting confidence in its operational efficiency, yet the mixed results across different segments suggest a cautious outlook. These elements combined lead to a balanced perspective, justifying the Hold rating as the company demonstrates both strengths and areas needing improvement.

In another report released on July 31, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $81.00 price target.

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