Fiserv earnings missed by $0.61, revenue fell short of estimates
Investing.com - RBC Capital raised its price target on Aveanna Healthcare Holdings Inc (NASDAQ:AVAH), a $1.96 billion healthcare services provider with 11.5% revenue growth, to $10.00 from $8.00 on Friday, while maintaining a Sector Perform rating on the stock. According to InvestingPro data, the company has shown strong momentum with a remarkable 115.75% return year-to-date.
The price target increase follows Aveanna’s preliminary third-quarter results for 2025, which RBC noted came in "well ahead of expectations," demonstrating another strong quarterly performance. InvestingPro analysis shows three analysts have revised their earnings upward for the upcoming period, with the company currently trading at a P/E ratio of 97x.
The analyst update coincided with private equity sponsor J.H. Whitney’s recently priced sale of 10 million shares, which RBC believes should help ease the "private equity and share liquidity overhang" that may have deterred some potential investors.
Despite Wednesday’s approximately 7% pullback in the stock, RBC expressed the view that Aveanna’s strong fundamental performance outweighs both the sponsor selling pressure and anticipation of future secondary market activity.
The firm’s price target adjustment primarily reflects updated estimates based on the company’s continued strong operational results in the third quarter of 2025.
In other recent news, Aveanna Healthcare Holdings Inc. has announced the completion of a $1.325 billion credit facility refinancing. This financial maneuver includes $886 million in refinanced first lien term loans and an additional $439 million in incremental first lien borrowing, with the maturity extended to 2032. The company’s revolving credit facility was also increased from $170.3 million to $250 million, with the maturity date extended to 2030. Separately, J.H. Whitney Equity Partners VII, LLC has initiated a secondary offering of 10 million shares of Aveanna Healthcare common stock at $9.00 per share. Underwriters have been granted a 30-day option to purchase up to an additional 1.5 million shares, with all proceeds going to the selling stockholders. Aveanna Healthcare will not receive any proceeds from this transaction. Additionally, JPMorgan has upgraded Aveanna Healthcare’s stock rating from Underweight to Neutral, raising the price target from $6.00 to $10.00. Despite the upgrade, JPMorgan noted concerns about Aveanna’s liquidity and labor market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.