Craig Hettenbach, an analyst from Morgan Stanley, maintained the Buy rating on Omada Health, Inc.. The associated price target remains the same with $32.00.
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Craig Hettenbach has given his Buy rating due to a combination of factors that highlight Omada Health’s potential for growth and profitability. The company’s new initiative in GLP-1 prescribing is seen as a significant growth lever, expected to enhance margins by integrating prescribing capabilities into its app. This strategic move is anticipated to provide an upsell opportunity and align with the evolving GLP-1 market, offering value to employers by ensuring optimal drug use for employees.
Additionally, Omada Health’s management is focused on achieving long-term EBITDA margin targets, having already reached profitability earlier than expected. The company’s internally developed care delivery platform, multi-condition sales strategy, and efficient marketing campaigns are key drivers of this progress. Furthermore, the adoption of AI tools is expected to boost member growth without proportionally increasing care team costs, supporting the company’s long-term gross margin goals. Despite the focus on future investments, such as the GLP-1 initiative, Omada Health has consistently exceeded EBITDA estimates, reinforcing confidence in its strategic direction.
According to TipRanks, Hettenbach is ranked #3295 out of 10073 analysts.
In another report released on November 12, J.P. Morgan also maintained a Buy rating on the stock with a $32.00 price target.