Citizens reiterates Market Outperform rating on Addus HomeCare stock

Published 20/10/2025, 10:12
Citizens reiterates Market Outperform rating on Addus HomeCare stock

Investing.com - Citizens maintained its Market Outperform rating and $150.00 price target on Addus HomeCare (NASDAQ:ADUS) stock, which currently trades at $118.31 with a market capitalization of $2.15 billion. According to InvestingPro data, the stock is currently trading below its Fair Value, with analysts’ consensus target suggesting 23% upside potential.

The firm cited Addus HomeCare’s multi-state scaled footprint, multiple service levels, and the essential nature of its Personal Care services as reasons for its positive outlook. The company’s strong market position is reflected in its impressive 14.29% revenue growth and "GREAT" financial health score from InvestingPro’s comprehensive analysis.

Citizens noted that on September 1, personal care rates in Texas, Addus’s second-largest personal care state, increased by 9.9%.

This rate increase was followed by a 2.6% hospice rate increase that took effect on October 1.

The firm expressed confidence in Addus HomeCare’s potential to maintain its 10% top-line growth rate objective over the next several years, supported by the company’s solid balance sheet and strong cash flows.

In other recent news, Addus HomeCare reported its second-quarter earnings for 2025, surpassing market expectations. The company posted an adjusted earnings per share (EPS) of $1.49, beating the forecasted $1.47, while revenue reached $349.4 million, exceeding the anticipated $346.55 million. UBS initiated coverage on Addus HomeCare with a Buy rating, setting a price target of $145.00. The investment bank highlighted favorable demographic trends, including an aging population with higher co-morbidities, and a shift toward lower-cost care settings as positive factors for the company.

Additionally, Addus HomeCare announced the appointment of Heather Dixon as the new President and Chief Operating Officer, effective mid-September. Dixon, who previously held executive roles at Acadia Healthcare and Everside Health, will replace W. Bradley Bickham, who will transition to an advisory role until his retirement in March 2026. These developments reflect Addus HomeCare’s strategic focus on leadership and market opportunities.

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