Leerink Partners analyst Whit Mayo has reiterated their bullish stance on PRVA stock, giving a Buy rating on February 28.
Whit Mayo’s rating is based on Privia Health Group’s consistent and strong execution, which has been evident over the past several years. The company has demonstrated impressive growth in provider numbers and has shown significant improvements in operating margins, which have increased by 230 basis points year-over-year in 2024. This consistent performance, even in challenging utilization environments, underscores the company’s ability to meet its targets reliably.
Additionally, Privia Health Group’s capital efficiency and substantial cash reserves provide future opportunities for strategic capital deployment. The company’s predictable MSO business model and solid track record in managing their VBC book further bolster confidence in their 2025 growth targets. As a result, Mayo has set a price target of $30, reflecting a revised valuation based on a terminal value DCF model and a 20x multiple, highlighting the company’s long-term EBITDA growth potential.
According to TipRanks, Mayo is a 4-star analyst with an average return of 3.0% and a 48.13% success rate. Mayo covers the Healthcare sector, focusing on stocks such as Pediatrix Medical Group, HCA Healthcare, and UnitedHealth.
In another report released on February 28, JMP Securities also maintained a Buy rating on the stock with a $29.00 price target.