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Investing.com - JPMorgan has initiated coverage on U.S. Physical Therapy (NYSE:USPH) with an Overweight rating and a price target of $110.00. The stock, currently trading at $78.87, has significant upside potential according to analysts, with targets ranging from $98 to $113. InvestingPro data shows the company maintains a "GOOD" overall financial health score.
The investment bank believes USPH is strategically positioned to capitalize on long-term demographic trends, including an aging population, rising obesity rates, and increased desire for physical activity among older adults, all driving demand for physical therapy services.
JPMorgan notes the physical therapy industry remains highly fragmented with over 37,000 facilities, positioning USPH to continue gaining market share through both favorable secular demand trends and its strong balance sheet capacity for inorganic facility expansion.
While Medicare sequestration has pressured USPH margins over the past five years amid tight labor conditions, the firm points out that USPH has offsetting opportunities through more favorable terms in workers’ compensation arrangements.
JPMorgan expects a more favorable rate environment for Medicare in 2026 under the one-time 2026 Doc Fix for Medicare PFS rates, with additional upside potential if Congress implements a permanent fix.
In other recent news, U.S. Physical Therapy reported impressive financial results for the second quarter of 2025. The company exceeded analyst expectations with an earnings per share (EPS) of $0.81, surpassing the forecasted $0.70. Revenue also came in higher than anticipated, reaching $197.34 million compared to the expected $189.66 million. This performance represents a 15.71% surprise in earnings, highlighting the company’s strong financial health. Analysts from various firms have noted these results, although specific upgrades or downgrades were not mentioned. These developments reflect U.S. Physical Therapy’s ability to outperform market predictions. The company’s recent achievements have drawn attention from investors and analysts alike.
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