Analyst Joanna Gajuk from Bank of America Securities maintained a Buy rating on Concentra Group Holdings Parent, Inc. and keeping the price target at $27.00.
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Joanna Gajuk has given his Buy rating due to a combination of factors that point to resilient growth and improving fundamentals at Concentra Group Holdings Parent, Inc. The company’s fourth-quarter visit volumes exceeded expectations despite broader concerns about a slowing U.S. labor market, suggesting Concentra is benefiting from a stable employment backdrop and likely gaining market share. Management reaffirmed its 2025 guidance and signaled confidence in the future by repurchasing 1.1 million shares in the fourth quarter, while preliminary 2026 expectations call for solid revenue and EBITDA growth. In addition, Concentra’s limited exposure to government payors, balanced customer mix across multiple industries, and steady mid-single-digit organic growth profile further support the positive outlook.
Gajuk also highlights that both workers’ compensation and employer services segments are delivering healthy same-store volume growth, with trends improving relative to earlier periods. The company is simultaneously funding tuck-in acquisitions and new clinic openings while returning capital to shareholders, demonstrating strong free cash flow generation. Leverage is projected to decline meaningfully over the next two years, reflecting prudent balance sheet management alongside growth investments. With the stock trading below the $27 price objective and the business continuing to execute well operationally, she views the current valuation as attractive for long-term investors.
In another report released today, TipRanks – PerPlexity also upgraded the stock to a Buy with a $22.00 price target.