Barrington analyst Michael Petusky maintained a Buy rating on US Physical Therapy (USPH – Research Report) today and set a price target of $98.00.
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Michael Petusky has given his Buy rating due to a combination of factors, primarily centered around the potential positive shifts in Medicare reimbursement policies and the company’s strong business performance. The management of U.S. Physical Therapy (USPH) has expressed optimism regarding the potential end of Medicare pricing headwinds, which have been a challenge since 2021. Legislative proposals in both the House and Senate suggest possible reimbursement increases for outpatient physical therapy, which would be a significant positive change for USPH.
Additionally, USPH has demonstrated strong momentum in patient visits and positive outcomes from recent transactions, such as the Metro deal, which has already shown a 5% improvement in net rate per patient visit. The company’s industrial injury prevention (IIP) business is also performing well, with double-digit organic revenue growth and a strong revenue run rate. These factors, combined with the potential for margin expansion if Medicare pricing improves, support Petusky’s OUTPERFORM rating and the $98 price target for USPH shares.