Innovage Holding stock shows encouraging momentum as KeyBanc reiterates rating

Published 11/09/2025, 13:40
Innovage Holding stock shows encouraging momentum as KeyBanc reiterates rating

Investing.com - KeyBanc maintained its Sector Weight rating on Innovage Holding Corp (NASDAQ:INNV) on Thursday, citing encouraging momentum as the company enters fiscal year 2026. The company has shown strong recent performance, with a 13.7% return over the past week and nearly 26% over the last six months. According to InvestingPro analysis, INNV appears undervalued based on its Fair Value calculations.

The investment firm noted that Innovage’s results were "well above Street" expectations, driven by continued strong census growth and successful execution of clinical initiatives. With revenue of $853.7 million and an impressive 68.5% gross profit margin in the last twelve months, the company demonstrates solid operational performance. InvestingPro data reveals 8 additional key insights about INNV’s performance and potential.

KeyBanc highlighted that Innovage is currently deploying and scaling more robust capabilities across its PACE (Program of All-Inclusive Care for the Elderly) portfolio, including standardized clinical and value-based care processes such as post-discharge follow-ups.

The company is also enhancing its payor capabilities, including payment integrity, and implementing various operating efficiencies, according to KeyBanc’s analysis.

These improvements are helping drive outsized EBITDA growth and provide visibility toward Innovage’s intermediate margin targets, prompting KeyBanc to adjust its estimates while maintaining its Sector Weight rating.

In other recent news, InnovAge Holding Corp reported its fourth-quarter 2025 earnings, showcasing a notable increase in revenue but a miss on earnings per share (EPS) expectations. The company achieved a total revenue of $853.7 million, marking an 11.8% increase compared to the previous year. However, InnovAge reported a net loss of $35.3 million, resulting in an EPS of -$0.22, which did not meet the forecasted EPS of -$0.0133. These developments are significant for investors evaluating the company’s financial performance. Additionally, while the earnings report was a focal point, there were no recent updates regarding mergers or acquisitions involving InnovAge. Analyst firms have not provided any recent upgrades or downgrades, leaving the focus primarily on the earnings results. These updates provide a clear picture of InnovAge’s recent financial activities, impacting investor considerations.

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