Aveanna initiated with an Outperform at BMO Capital

BMO Capital initiated coverage of Aveanna (AVAH) with an Outperform rating and $11 price target Shares are up about 130% since early August on strong Q2 and Q3 results fueled by state reimbursement increases, preferred payer expansion, and disciplined cost control, which also lowered leverage, the analyst tells investors in a research note. While future Medicaid rate hikes may be limited, ongoing payer conversions, cost discipline, and potential M&A underpin expectations for 10+ long-term EBITDA growth, the firm says.