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Investing.com - Jefferies has raised its price target on BrightSpring Health (NASDAQ:BTSG) to $36.00 from $35.00 while maintaining a Buy rating on the $6.2 billion healthcare services provider. The company, currently trading near its 52-week high of $31.95, has demonstrated remarkable momentum with a 90% return over the past six months.
The price target increase follows KKR’s recent sale of 15 million shares, which Jefferies indicates was expected by most investors, particularly given the recent appreciation in BrightSpring’s stock price.
Despite the share sale, KKR remains a significant stakeholder, retaining approximately 46% ownership of BrightSpring’s outstanding shares after the offering.
Jefferies views KKR’s move as part of a strategic process to gradually reduce shareholder concentration while improving BrightSpring’s float in the market.
The firm emphasized that BrightSpring’s fundamentals remain strong, noting the company recently delivered another EBITDA beat, which reinforces the stock’s "beat & raise" and growth investment theses.
In other recent news, BrightSpring Health Services, Inc. reported a significant increase in its third-quarter revenue, reaching approximately $3.33 billion, a 28.2% rise compared to the same period last year. The company also raised its full-year guidance, indicating a positive outlook for the remainder of 2025. Additionally, BrightSpring posted a preliminary net income of $37.5 million for the quarter ended September 30, contrasting with a net loss of $25.7 million in the third quarter of 2024. In a separate development, certain stockholders, including an affiliate of Kohlberg Kravis Roberts & Co. L.P. and members of BrightSpring’s management, have priced a secondary offering of 15 million shares. The company itself is not selling any shares in this offering and will not receive any proceeds from the sale. The offering is expected to close on October 22, 2025, subject to customary closing conditions. This move follows a previous report of BrightSpring’s strong second quarter, where revenue increased by 29% year-over-year, reaching $3.1 billion.
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