UBS analyst A.J. Rice has maintained their bullish stance on PRVA stock, giving a Buy rating yesterday.
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A.J. Rice has given his Buy rating due to a combination of factors surrounding Privia Health Group’s strategic acquisition of Evolent Health’s Accountable Care Organization (ACO) business. This acquisition aligns well with Privia’s existing operations, as it mirrors the assets already present in their portfolio, and follows their successful expansion into Connecticut via Community Medical Group.
Furthermore, the acquisition brings approximately 120,000 lives under management, with a significant portion assigned through the Medicare Shared Savings Program (MSSP), which has demonstrated strong financial performance. Although there are differences in accounting and revenue recognition, Privia anticipates that this acquisition will positively impact adjusted EBITDA by 2026 and enhance overall ACO performance. This strategic move is expected to integrate around 1,000 physicians into Privia’s model, potentially driving synergies and growth.
In another report released yesterday, Evercore ISI also maintained a Buy rating on the stock with a $28.00 price target.