Option Care Health: Strong Growth Prospects and Strategic Initiatives Drive Buy Rating

Joanna Gajuk, an analyst from Bank of America Securities, reiterated the Buy rating on Option Care Health. The associated price target is $35.00.

Joanna Gajuk’s rating is based on Option Care Health’s solid long-term growth prospects and its ability to achieve high single-digit revenue growth along with low double-digit EBITDA growth. The company’s confidence in maintaining this growth trajectory, despite potential challenges such as the impact of Stelara biosimilars, is a key factor in the Buy rating. The raised price objective to $35 reflects increased visibility into next year’s performance, supported by strong cash flows and demographic trends that favor the company’s business model.
Moreover, Option Care Health’s strategic initiatives, such as expanding its advanced practitioner model and negotiating contracts on multiple drugs, are expected to drive revenue and EBITDA growth. The company’s partnerships with payers and its scale advantages position it well to manage rising specialty drug costs and participate in new distribution contracts. These factors, combined with the company’s ability to capture market share in both Acute and Chronic therapies, underpin the positive outlook and Buy rating.