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On Thursday, Citi analyst Daniel Grosslight increased the price target for Privia Health Group Inc (NASDAQ:PRVA) to $32.00, up from the previous $26.00, while reiterating a Buy rating on the company’s stock. The stock, currently trading at $25.46, has shown impressive momentum with a 23% gain year-to-date, approaching its 52-week high of $25.67. Grosslight’s optimism followed Privia Health’s strong fourth-quarter performance, which surpassed guidance and expectations on multiple fronts. According to InvestingPro analysis, the company maintains a "GREAT" financial health score of 3.41 out of 5.
Privia Health reported a year-over-year increase of approximately 5% in practice collections, with the number of implemented providers growing by 11.2% and attributed lives by 12.1%. The company also demonstrated operational efficiency, with Care Margins expanding by 18% year-over-year, translating to a margin expansion that exceeded both the analyst’s and consensus estimates. The company’s revenue growth stands at 8.54%, though InvestingPro data indicates it’s currently trading at elevated multiples with a P/E ratio of 236.67.
Adjusted EBITDA for Privia Health saw a significant year-over-year increase of 44%, resulting in a margin expansion that outperformed expectations by roughly 7%. This quarter’s earnings were particularly notable for the substantial growth in fee-for-service revenue, which jumped 15% compared to the previous year.
While Privia Health’s guidance for the future was slightly below Citi’s top-line expectations, it was ahead in terms of EBITDA. Grosslight attributed the conservative guidance to the company’s prudence, suggesting that it did not account for potential Shared Savings or growth from new markets. He expressed confidence that there is room for numbers to rise throughout the year.
Grosslight highlighted Privia Health’s strong financial position, with nearly $500 million in cash reserves and an impressive free cash flow that exceeded 80% in fiscal year 2025. This robust financial health is further evidenced by the company’s minimal debt load and strong current ratio of 1.78. This, according to the analyst, gives the company ample flexibility to aggressively expand into new markets or pursue acquisitions, actions that are not currently reflected in their guidance. For deeper insights into Privia Health’s financial position and growth potential, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Privia Health Group, Inc. reported strong fourth-quarter earnings and revenue, significantly surpassing analyst expectations. The company posted adjusted earnings per share of $0.21, well above the analyst consensus estimate of $0.05. Revenue for the quarter reached $460.9 million, exceeding the anticipated $420.94 million. For the full year 2024, Privia Health’s revenue increased by 4.7% to $1.74 billion, while adjusted EBITDA grew by 25.2% to $90.5 million. Looking forward, the company has provided 2025 revenue guidance of $1.8 to $1.9 billion, aligning closely with the analyst consensus of $1.89 billion. Privia Health ended 2024 with $491.1 million in cash and no debt, highlighting a strong financial position. The company plans to focus on increasing provider density in existing markets and expanding into new states in 2025.
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