AdaptHealth price target lowered to $14 from $15 at Canaccord

Canaccord lowered the firm’s price target on AdaptHealth (AHCO) to $14 from $15 and keeps a Buy rating on the shares. The firm said Adapt closed the year with much accomplished in 2025 from operational improvements, free cash flow generation, and the addition of the largest capitation contract in DME industry history. Unfortunately, the company’s decision to pull investment forward to begin to ramp this capitated contract (ahead of previous expectations), plus a debt collection legal settlement in North Carolina, led to a shortfall in adj-EBITDA versus guidance and estimates.