In a report released today, Joanna Gajuk from Bank of America Securities reiterated a Buy rating on US Physical Therapy (USPH – Research Report), with a price target of $98.00.
Joanna Gajuk has given her Buy rating due to a combination of factors that highlight US Physical Therapy’s strong performance and growth potential. Despite challenges such as adverse weather conditions early in the first quarter, the company reported better-than-expected results, with total volumes and pricing improvements contributing to an EBITDA beat. The company’s ability to achieve higher commercial rates and an increased mix of workers’ compensation cases helped offset the negative impact of a Medicare rate cut.
Additionally, US Physical Therapy’s revenue growth was impressive, with physical therapy revenues exceeding estimates by 10% due to higher volumes and better pricing. The company also demonstrated strong organic growth in its Industrial Injury Prevention segment, with revenues increasing significantly. These positive indicators, combined with a solid organic growth rate supplemented by strategic acquisitions, underpin Gajuk’s confidence in the company’s future performance, justifying the Buy rating.
Gajuk covers the Healthcare sector, focusing on stocks such as UnitedHealth, Chemed, and Addus Homecare. According to TipRanks, Gajuk has an average return of -1.0% and a 53.80% success rate on recommended stocks.
In another report released on April 22, Citizens JMP also reiterated a Buy rating on the stock with a $113.00 price target.