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Investing.com - Jefferies upgraded Aveanna Healthcare Holdings Inc (NASDAQ:AVAH) from Hold to Buy while slightly lowering its price target to $6.00 from $6.25. The company, with a market capitalization of $817 million and annual revenue of $2.09 billion, has shown solid revenue growth of 9% in the last twelve months.
The research firm cited expectations for continued fundamental strength and positive earnings surprises as key factors behind the rating change. These improvements are anticipated to be driven by management’s efforts to bolster capacity and focus clinician supply on better-reimbursing payer contracts. According to InvestingPro data, three analysts have recently revised their earnings estimates upward, while technical indicators suggest the stock is currently in oversold territory.
Jefferies noted that the recent stock sell-off related to a home nursing rate proposal appears overdone, as Medicare home health represents a smaller portion of Aveanna’s overall business.
The upgrade comes despite the minor reduction in price target, suggesting Jefferies sees significant upside potential for the healthcare services provider despite some near-term pricing pressures.
Aveanna Healthcare Holdings provides pediatric and adult healthcare services across the United States, with offerings including private duty nursing, therapy services, and home medical equipment.
In other recent news, Aveanna Healthcare Holdings Inc. reported significant financial results for the first quarter of 2025. The company achieved earnings per share of $0.10, surpassing the forecasted loss of $0.0014, and generated revenue of $559 million, exceeding projections by approximately $45.5 million. Aveanna projects its 2025 revenue to exceed $2.15 billion, with an adjusted EBITDA projection of over $270 million. Barclays (LON:BARC) initiated coverage on Aveanna with an Equalweight rating, noting the company’s successful rate negotiations with state partners and improved margins, although expressing caution about optimistic 2026 EBITDA expectations. Additionally, Aveanna announced the results of its 2025 Annual Meeting of Stockholders, where stockholders approved the election of directors and the ratification of Ernst & Young LLP as the independent auditor. The company also highlighted its strategic priorities, including government and payer partnerships, and the acquisition of ThriveSkilled Pediatrics, which aims to enhance its preferred payer and government affairs strategies. These developments reflect Aveanna’s ongoing efforts to navigate the healthcare landscape and improve its financial performance.
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