Benchmark maintains Nutex Health stock Buy rating, $60 target

Published 01/04/2025, 15:26
Benchmark maintains Nutex Health stock Buy rating, $60 target

On Tuesday, Benchmark analysts maintained their Buy rating on Nutex Health (NASDAQ: NUTX) shares, with a steady price target of $60.00. The stock, which has seen a remarkable 230% return over the past year according to InvestingPro data, recently reported fourth-quarter earnings showing significant revenue growth. With 10 additional ProTips available on InvestingPro, investors can gain deeper insights into NUTX’s market position and growth potential.

For the fourth quarter of 2024, Nutex Health reported a revenue of $257.6 million, a substantial rise from $69.7 million the previous year. The reported revenue included $169.7 million that came from successful rate arbitration with payers. When this figure is adjusted, revenue from normally reimbursed services stood at $87.9 million, marking a 26% year-over-year increase and surpassing Benchmark’s estimate of $79.5 million. This growth aligns with the company’s broader trend, as InvestingPro data shows a robust 26% revenue growth over the last twelve months.

The growth in revenue was attributed to a 10% rise in patient visits, with 3% of this growth coming from hospitals that have been operating for a longer period. Additionally, there was a 16% increase in revenue per visit, which was bolstered by higher emergency room acuity and an enhanced mix of services offered.

Nutex Health’s adjusted EBITDA for the quarter was reported at $93.6 million, a significant jump from $3.1 million a year ago. Benchmark analysts believe that, based on current operations, the adjusted EBITDA for the company was above their estimate of $10.9 million.

The maintenance of the Buy rating and price target reflects Benchmark’s continued confidence in Nutex Health’s performance and future prospects, as evidenced by the company’s strong financial results for the quarter. According to InvestingPro analysis, the company maintains a "GOOD" overall financial health score, with analysts projecting profitability this year. Based on InvestingPro’s Fair Value analysis, the stock currently appears slightly overvalued relative to its fundamentals.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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