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Investing.com - Barclays (LON:BARC) upgraded Aveanna Healthcare Holdings Inc (NASDAQ:AVAH) from Equalweight to Overweight on Tuesday, raising its price target to $9.50 from $5.50. The stock, currently trading at $7.04, has demonstrated strong momentum with a 54% year-to-date return and a market capitalization of $1.46 billion.
The upgrade follows what Barclays described as a "thesis changing quarter" in Aveanna’s second-quarter earnings report, which addressed previous policy-driven concerns and demonstrated positive differentiation within the Medicaid landscape.
Barclays significantly revised its 2026 EBITDA estimate for Aveanna upward by $55 million, representing a 26% increase from its previous projection.
The investment bank now sees a clear path for Aveanna to generate approximately $100 million in free cash flow next year, a substantial improvement in the company’s financial outlook.
Barclays also expects Aveanna’s net leverage to improve to 4x this year, a significant reduction from 9x in 2023, reflecting the healthcare provider’s strengthening financial position.
In other recent news, Aveanna Healthcare Holdings Inc. reported strong financial results for the second quarter of 2025, with earnings per share of $0.18, surpassing the expected $0.04. The company’s revenue also exceeded expectations, reaching $590 million compared to the projected $533.92 million. Following these results, Raymond (NSE:RYMD) James upgraded Aveanna’s stock from Market Perform to Outperform, setting a price target of $9.00. UBS also upgraded Aveanna from Sell to Neutral, citing improved leverage outlook and a better understanding of the impacts of interest rate swaps and caps.
Meanwhile, Metro Bank Plc received an upgrade from RBC Capital, moving from Sector Perform to Outperform. RBC Capital maintained its price target of GBP1.55, highlighting a projected 18.2% return on tangible equity by fiscal year 2028. These upgrades reflect the recent positive developments in both companies, indicating a favorable outlook from analysts.
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