Chemed price target lowered to $640 from $674 at RBC Capital

RBC Capital analyst Ben Hendrix lowered the firm’s price target on Chemed (CHE) to $640 from $674 and keeps an Outperform rating on the shares. The firm is disappointed to see Medicare cap limitations weigh on the 2025 outlook, though it is also encouraged by VITAS’ new CON, which should help the company maintain strong positioning in an increasingly competitive FL market, the analyst tells investors in a research note. RBC adds that headwinds at Roto-Rooter continue with an unanticipated decline in residential volume, which more than offset improving commercial trends.