Omada Health, Inc. (OMDA) has received a new Buy rating, initiated by BMO Capital analyst, .
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BMO Capital’s rating is based on Omada Health, Inc.’s strategic positioning in the digital health sector, which is supported by several key factors. The company has a large, under-penetrated total addressable market (TAM) in the chronic care space, with chronic illnesses accounting for a significant portion of U.S. healthcare spending. Omada’s programs, which are sold to payers and then offered to members, aim to improve patient health while reducing care costs. This positions Omada well for growth, especially with their recent enhancements to their GLP-1 companion program and investments in AI.
Additionally, Omada has demonstrated strong financial performance, achieving positive EBITDA in the third quarter of 2025, which is a positive signal for investors. The company’s relationships with insurers covering a substantial portion of the market, combined with opportunities for cross-selling and new program rollouts, support a long-term revenue growth target of over 20% and expanding margins. BMO Capital also notes that Omada’s valuation is in line with its peers, and consistent execution will be crucial for further valuation increases. Other potential growth catalysts include achieving positive free cash flow and securing new client and payer contracts.
In another report released on November 7, Canaccord Genuity also maintained a Buy rating on the stock with a $28.00 price target.