J.P. Morgan analyst Lisa Gill has maintained their bullish stance on OPCH stock, giving a Buy rating on April 2.
Lisa Gill’s rating is based on the assessment that the recent FDA approval of Vyvgart Hytrulo for self-administration is unlikely to significantly impact Option Care Health’s financial performance. The company has diversified its revenue streams, with no single drug contributing more than 5% to its total revenue, which minimizes the potential negative impact of Vyvgart’s revenue loss.
Furthermore, Option Care Health has indicated that branded drugs like Vyvgart typically operate at lower margins, and the expected contribution to the company’s overall adjusted EBITDA is minimal. The company has been proactive in monitoring its drug pipeline, suggesting that the recent developments were anticipated and factored into their future guidance. Consequently, the recent stock price decline is viewed as a buying opportunity, reinforcing the Buy rating.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of OPCH in relation to earlier this year.