Bank of America Securities analyst Joanna Gajuk has reiterated their bullish stance on CON stock, giving a Buy rating on April 22.
Claim 70% Off TipRanks This Holiday Season
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Joanna Gajuk’s rating is based on several positive developments for Concentra Group Holdings Parent, Inc. The company reported a slight beat in its adjusted EBITDA, which was better than expected due to improved margins. Additionally, Concentra raised its revenue and EBITDA guidance by 1% following a strong first quarter and a small acquisition in early March. This acquisition, along with the company’s unique payor mix and mid-single-digit organic growth, contributes to the potential upside.
Furthermore, Concentra’s workers’ compensation revenues, which make up a significant portion of its total revenue, grew by 8% year-over-year, aligning with estimates and slightly surpassing consensus expectations. Employer services revenues also showed improvement, with volumes accelerating compared to the previous quarter. These factors, combined with a pending acquisition not yet included in the guidance, bolster confidence in the company’s growth prospects, justifying the Buy rating and a price objective increase to $27.