Analyst Joanna Gajuk of Bank of America Securities reiterated a Buy rating on Option Care Health (OPCH – Research Report), retaining the price target of $39.00.
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Joanna Gajuk’s rating is based on a combination of factors that highlight Option Care Health’s strong growth prospects and resilience in the face of potential challenges. Despite concerns about the impact of potential drug tariffs, the company has demonstrated an ability to manage reimbursement lags effectively, ensuring that procurement costs and payor reimbursements align over time. This adaptability, along with the company’s strategic positioning in the market, supports the Buy rating.
Moreover, Option Care Health has shown robust growth in its acute and chronic therapy segments, benefiting from favorable market dynamics such as competitors exiting the market and advantageous changes under the Inflation Reduction Act. The company’s conservative financial guidance, which was raised following strong revenue performance, further underscores its potential for long-term growth driven by demographic trends and a shift towards lower-cost healthcare settings. These elements collectively justify the Buy recommendation with a price objective of $39.00 USD.
In another report released today, JMP Securities also reiterated a Buy rating on the stock with a $36.00 price target.
OPCH’s price has also changed slightly for the past six months – from $30.500 to $30.690, which is a 0.62% increase.