In a report released yesterday, Charles Rhyee from TD Cowen maintained a Hold rating on Option Care Health, with a price target of $23.00.
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Charles Rhyee has given his Hold rating due to a combination of factors related to Option Care Health’s outlook and guidance. He notes that management now projects a much larger headwind from CID/Stelara reimbursement of about $55M, alongside a weaker-than-anticipated second-quarter adjusted EBITDA forecast, which together help explain the sharp negative stock reaction and increase execution risk.
At the same time, the company’s guidance implies an aggressive acceleration in second-half adjusted EBITDA, requiring unusually strong underlying growth excluding the CID impact. Although management has outlined cost savings, new therapy launches, and site-of-care initiatives to support this ramp, Rhyee views the targets as demanding, trims his 2026 EBITDA estimate to the low end of company guidance, and lowers his price target to $23, leading him to maintain a neutral, Hold stance rather than recommend buying or selling the shares.
Based on the recent corporate insider activity of 47 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.