Freedom Broker lowers Omada Health stock price target to $20 from $26

Investing.com - Freedom Broker has lowered its price target on Omada Health Inc (NASDAQ:OMDA) to $20 from $26 while maintaining a Buy rating on the stock. The company, currently trading at $19.46 and commanding a market capitalization of $1.1 billion, has shown strong momentum with an impressive 12% gain over the past week. InvestingPro data reveals several additional key metrics that could impact investment decisions.

The adjustment follows Omada Health’s second-quarter results, which exceeded both the firm’s and consensus estimates, according to Freedom Broker analyst Gene Mannheimer.

Omada Health, which positions itself as a "between visit program provider" for common and costly chronic conditions, has demonstrated significant growth with a 50% increase in both members and revenue.

The company also narrowed its losses, nearly achieving break-even EBITDA approximately one year ahead of Freedom Broker’s projections.

Freedom Broker’s revised $20 price target is based on a 6x forward revenue multiple, which it notes is in line with select comparable companies but still represents a discount to competitor Hinge Health.

In other recent news, Omada Health has been the subject of multiple analyst initiations, reflecting a positive outlook on its stock. Freedom Broker initiated coverage with a Buy rating and a price target of $26.00, suggesting a potential upside of approximately 40% from current levels. Needham also started coverage with a Buy rating, setting a price target of $23.00, and highlighted Omada’s virtual-first care platform as a key strength. Evercore ISI joined in with an Outperform rating and a price target of $21.00, acknowledging the company’s service to over 679,000 members. Barclays (LON:BARC) initiated with an Overweight rating and a $21.00 price target, emphasizing the potential of Omada’s GLP-1 Care Track offerings. Morgan Stanley (NYSE:MS) also provided an Overweight rating with a $25.00 price target, noting the economic impact of chronic diseases that Omada addresses. These developments come after Omada Health’s initial public offering, which raised $150 million.

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