Oncology Institute (TOI) has received a new Buy rating, initiated by Needham analyst, Matthew Shea.
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Matthew Shea’s rating is based on the Oncology Institute’s strategic position in addressing the rising costs associated with oncology care. The company is seen as a key player in providing solutions that can effectively manage these costs, which is increasingly important as the healthcare system seeks to implement value-based care (VBC) models.
Shea anticipates a strong growth trajectory for the Oncology Institute, with a projected 20%+ increase in topline revenue driven by initial fee-for-service (FFS) arrangements that transition into value-based care agreements. Currently, the majority of the company’s profit and loss is tied to FFS, but as the mix shifts, there is potential for EBITDA margins to improve significantly. With expectations of positive EBITDA by the fourth quarter and fiscal year 2026, Shea believes the stock is undervalued, justifying the Buy rating.
In another report released on November 14, Noble Financial also reiterated a Buy rating on the stock with a $8.00 price target.