Healthcare Services upgraded to Buy from Neutral at UBS

UBS analyst AJ Rice upgraded Healthcare Services (HCSG) to Buy from Neutral with a price target of $15, up from $12. The firm believes the company will see an acceleration in revenue growth to 5.7% in 2025 as it benefits from an improving nursing home industry, strong retention, new customer additions, and cross-selling opportunities. Nursing homes represent the majority of Healthcare Services’ overall business and is an industry that is recovering from a challenged environment during the pandemic, the analyst tells investors in a research note. UBS says the company’s “discounted valuation” offers an attractive entry point.