BrightSpring Health Services, Inc.: Strong Growth Prospects and Strategic Positioning Drive Buy Rating

Analyst Joanna Gajuk from Bank of America Securities maintained a Buy rating on BrightSpring Health Services, Inc. (BTSG – Research Report) and increased the price target to $26.75 from $25.00.

Joanna Gajuk’s rating is based on BrightSpring Health Services, Inc.’s strong growth prospects and strategic positioning. The company has demonstrated robust organic growth across its service lines, with the specialty pharmacy segment being a significant driver, achieving a 30% annual growth rate over the past three years. Additionally, the provider business lines, including home health, hospice, and rehab, are also experiencing notable growth rates above the market average.
BrightSpring’s strategic focus on mergers and acquisitions, particularly in the provider and infusion sectors, further enhances its growth potential. The company’s diversified sourcing strategy for generic drugs and its ability to offset tariff impacts with branded drug reimbursements also contribute to its financial resilience. Moreover, BrightSpring aims to achieve a leverage target of 3x by the end of the year, supported by expected EBITDA growth and proceeds from asset sales. These factors collectively underpin Joanna Gajuk’s Buy rating for BrightSpring Health Services, Inc.

In another report released on May 12, Wells Fargo also reiterated a Buy rating on the stock with a $27.00 price target.

BTSG’s price has also changed moderately for the past six months – from $19.660 to $23.240, which is a 18.21% increase.