Citizens JMP reiterates Market Outperform rating on Addus HomeCare stock

Investing.com - Citizens JMP analyst Constantine Davides reiterated a Market Outperform rating and $150.00 price target on Addus HomeCare (NASDAQ:ADUS), currently trading at $109.43 with a market capitalization of $1.99 billion. According to InvestingPro data, the stock maintains a strong Buy consensus among analysts.

The firm recently hosted meetings with Addus HomeCare executives, including CEO Dirk Allison, COO Brad Bickham, and CFO Brian Poff, where they discussed the company’s outlook with investors.

Citizens JMP noted that the One Big Beautiful Bill Act, signed into law on July 4, included several Medicaid-specific provisions that appear to have a benign impact on the company, consistent with management’s expectations.

Addus HomeCare management reiterated its view that as a low-cost provider, the company is generally insulated from state funding pressures that might affect the healthcare sector.

The company also indicated that recent provisions regarding Medicaid work requirements may actually help improve labor supply within its Personal Care segment, while being unlikely to impact patient census, as the average client age in Personal Care is mid-70s.

In other recent news, Addus HomeCare reported its first-quarter 2025 financial results, showcasing a revenue of $337.7 million, which marked a 20% year-over-year increase. Despite this growth, the revenue fell short of JMP Securities’ forecast of $339.2 million and the consensus estimate of $339.9 million. However, Addus HomeCare exceeded earnings per share (EPS) expectations, achieving an EPS of $1.42, surpassing the projected $1.34. The company’s adjusted EBITDA for the quarter was $40.6 million, a 25% increase from the previous year, outperforming both JMP’s estimate and the consensus. Citizens JMP and JMP Securities both reiterated a Market Outperform rating for Addus HomeCare, maintaining a $150 price target, reflecting confidence in the company’s growth and profitability potential. Recent developments also include Addus HomeCare’s strategic expansion and operational improvements, such as the integration of the Gentiva acquisition, which contributed to the company’s gross margin of 31.9%. Analysts from Citizens JMP highlighted potential growth drivers for Addus HomeCare, including mergers and acquisitions and favorable state reimbursement rates.

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