Option Care Health shares ‘undervalued’, says Barron’s

Option Care Health (OPCH) is capitalizing on the growing demand for at-home and alternate-site medical services, and the stock may be poised for a 37% increase due to its de-risked therapeutic portfolio, Barron’s Dan Victor writes in the publication’s Stock Picks column. The stock also offers a combination of solid growth tailwinds and “compelling” value that deserves a closer look, but despite a surge in profitability and rising margins, shares of Option Cahave been roughly flat since 2022, Victor notes. In late 2024, the company received a notice from the manufacturer of the blockbuster drug Stelara that it would significantly reduce the price spread that specialty pharmacies like Option Care can earn by billing customers, but Option Care has played down any long-term consequences, and the recent weakness may have have created “an exciting entry point”, Barron’s states.