Intel stock spikes after report of possible US government stake
On Thursday, BTIG initiated coverage on The Oncology Institute Inc. (NASDAQ:TOI) with a Buy rating and a price target of $7.00. Currently trading at $2.37, the stock has shown remarkable momentum with a 246% return over the past year, despite a recent 19% decline last week. The Oncology Institute, known for its specialized cancer treatment and management, operates with a mix of fee-for-service, capitated, and value-based care contracts. According to InvestingPro, the company shows several promising indicators among its 10+ available tips.
The Oncology Institute, which was established in 2007, manages care for approximately 1.9 million patients and provided care for about 72,000 patients across 16 markets in five states through its nearly 86 affiliated clinics in 2024. The company’s revenue model is diversified, with around 18% of its 2024 revenue coming from capitated arrangements, while approximately 46% was derived from value-based care. The company has demonstrated strong growth, with revenue reaching $393.4 million and showing a robust 21.3% year-over-year increase.
BTIG’s analysis highlighted the high margins associated with capitated contracts for The Oncology Institute and the company’s ability to generate income through increased volumes, higher medical trends, and the use of expensive oncology medications in fee-for-service deals. The firm also benefits from at-risk contracts in certain markets.
The analyst noted the complexity of managing care for oncology patients, pointing out that The Oncology Institute’s business model is distinct and well-suited to this challenging area of healthcare. With an aging population and rising healthcare costs, particularly in Medicare Advantage plans, BTIG anticipates an increase in fee-for-service revenue for The Oncology Institute as the year 2025 progresses.
Furthermore, the analyst expects the demand for capitated and managed care, as well as sub-contracted risk, to grow, which could benefit The Oncology Institute’s business strategy and financial performance in the future. While current analysis from InvestingPro suggests the stock is undervalued, investors should note that comprehensive research reports covering this and 1,400+ other stocks are available through the Pro platform, offering detailed insights into valuation, growth prospects, and financial health metrics.
In other recent news, The Oncology Institute reported its financial results for the first quarter of 2025, highlighting a revenue increase to $104.4 million, a 10.3% rise from the previous year. Despite this growth, the company faced a loss in earnings per share (EPS), which stood at -$0.21, missing analyst expectations. The company also improved its adjusted EBITDA, which was reported at -$5.1 million, an enhancement from -$10.9 million in the first quarter of 2024. The Oncology Institute reaffirmed its full-year 2025 guidance, projecting revenue between $460 million and $480 million and an adjusted EBITDA loss ranging from -$8 million to -$17 million. The company aims for positive adjusted EBITDA in the fourth quarter of 2025 and anticipates achieving profitability and cash flow positivity in 2026. Additionally, The Oncology Institute announced the appointment of Dr. Jeff Langsam as Chief Clinical Officer, signaling a strategic focus on enhancing its clinical operations. Analyst feedback from firms like BTIG and B. Riley Securities suggests optimism about the company’s growth trajectory and operational improvements. These recent developments indicate a strategic push towards long-term growth and financial stability.
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