Chemed downgraded at BofA with issues at Roto ‘not easing up’

BofA downgraded Chemed (CHE) to Neutral from Buy with a price target of $450, down from $595. Q4 EBITDA missed expectations and 2026 EBITDA guidance is 6% below expectations on a much worse Roto-Rooter outlook, says the analyst, who notes that issues at the segment are “not easing up.” Roto EBITDA has declined for three years in a row and the company missed its initial guidance, leaving the firm cautious on the 2026 outlook and ability to grow that business, the analyst tells investors.