William Blair analyst Ryan Daniels has maintained their bullish stance on PIII stock, giving a Buy rating today.
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Ryan Daniels has given his Buy rating due to a combination of factors that highlight P3 Health Partners’ potential for future growth and stability. The company reported a modest revenue beat in the first quarter, surpassing market expectations, and reaffirmed its full-year guidance, indicating a strong start to the fiscal year. Despite a slight shortfall in adjusted EBITDA, the stable utilization trends and management’s strategic initiatives provide a positive outlook.
Furthermore, the company’s efforts in renegotiating payer contracts and eliminating Part D risk are seen as significant steps towards improving profitability. These strategic moves, along with a focus on exiting unprofitable markets and reworking risk-based contracts, are expected to enhance the company’s profit outlook and reduce cash burn. Overall, despite some challenges in the near-term outlook for the sector, Daniels believes that P3 Health Partners remains undervalued and is well-positioned for future success.
In another report released today, Lake Street also maintained a Buy rating on the stock with a $20.00 price target.