Jefferies analyst Brian Tanquilut upgraded the rating on Chemed to a Buy today, setting a price target of $550.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Brian Tanquilut has given his Buy rating due to a combination of factors that suggest a positive outlook for Chemed’s financial performance. The recent Medicare reimbursement rates for FY26, particularly in Florida, have been more favorable than anticipated, which is expected to position Chemed’s earnings at the higher end of current expectations. This improvement in reimbursement is likely to enhance the company’s EBITDA projections, making the stock more attractive.
Additionally, Chemed’s management is actively repurchasing shares, which is anticipated to positively influence the stock’s valuation. Although there are uncertainties related to the Roto-Rooter segment, recent trends have been encouraging, with expectations for a strong performance in the upcoming quarters. The potential for a Federal Reserve rate cut could also benefit Roto-Rooter by shifting capacity back to new construction and renovation projects, reducing competitive pressures. Overall, these factors contribute to a more optimistic outlook for Chemed, justifying the Buy rating.
Tanquilut covers the Healthcare sector, focusing on stocks such as Chemed, Community Health, and CVS Health. According to TipRanks, Tanquilut has an average return of 4.5% and a 52.45% success rate on recommended stocks.