Omada Health, Inc. (OMDA) has received a new Buy rating, initiated by J.P. Morgan analyst, .
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JPMorgan’s rating is based on several compelling factors that highlight Omada Health, Inc.’s potential for growth and profitability. The company operates in a substantial $135 billion addressable market focused on chronic conditions such as diabetes, hypertension, and musculoskeletal issues. Despite this vast market, Omada is currently underpenetrated, which presents significant opportunities for expansion, especially with its recent entry into the GLP-1 space and a strategic partnership with CVS Caremark.
Omada’s growth prospects are further supported by a projected compound annual growth rate of 24% over the next three years, with expectations of reaching EBITDA profitability by 2027. The company’s long-term financial outlook is promising, with anticipated improvements in gross margins and EBITDA margins. Additionally, the potential revenue from the CVS partnership, which is not yet fully reflected in current models, could provide further upside. These factors collectively justify JPMorgan’s Buy rating and a price target of $20 by December 2025.
In another report released today, Barclays also initiated coverage with a Buy rating on the stock with a $21.00 price target.