Michael Petusky, an analyst from Barrington, maintained the Buy rating on Option Care Health. The associated price target remains the same with $38.00.
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Michael Petusky has given his Buy rating due to a combination of factors including Option Care Health’s strong expected financial performance and strategic market positioning. The company is projected to achieve significant revenue growth, with an estimated 10.5% increase in the second quarter compared to the previous year, driven by robust growth in chronic therapy revenue and increased market share in acute therapy. This growth is partly attributed to the exit of a key competitor, which has likely benefited Option Care Health.
Moreover, while there are some anticipated challenges with gross margins due to Stelara-related headwinds, there is potential for upside based on previous positive surprises. The company is also showing improvements in SG&A expenses, indicating a focus on operational efficiency. With a strong adjusted EPS forecast and a favorable risk/reward profile, Petusky maintains a price target of $38, supported by a 15x multiple on FY/25 adjusted EBITDA estimates, making Option Care Health an attractive investment opportunity.