, an analyst from BMO Capital, has initiated a new Buy rating on BrightSpring Health Services, Inc. (BTSG).
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BMO Capital has given its Buy rating due to a combination of factors that highlight BrightSpring Health Services, Inc.’s strong growth potential. The company has shown impressive performance year-to-date, primarily driven by its Specialty Pharmacy business. Looking forward, BMO Capital sees significant opportunities for BrightSpring to secure additional limited distribution drug contracts and benefit from generic drug conversions. These factors, along with prospects in Provider Services, support a robust three-year EBITDA growth outlook of over 12%.
BMO Capital also notes that despite the recent surge in share price, the stock still trades at a reasonable valuation, providing further upside potential. The complementary nature of BrightSpring’s pharmacy and provider offerings creates a long-term opportunity for integrated care solutions, enhancing monetization potential. The expected growth is driven by various factors, including momentum in the Oncology business, census growth in home health services, integration opportunities, automation savings, and potential mergers and acquisitions. Overall, these elements position BrightSpring for continued strong performance, justifying the Buy rating.
In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $39.00 price target.