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Investing.com - Noble Capital initiated coverage on The Oncology Institute Inc. (NASDAQ:TOI) with an Outperform rating and a price target of $8.00 on Wednesday. The stock, currently trading at $3.63, has shown remarkable momentum with a 1045% gain year-to-date, according to InvestingPro data.
The medical practice management company specializes in community-based oncology practices, operating clinics in five states using its proprietary, value-based methodology. Noble Capital noted that TOI’s treatment regimens have improved patient outcomes while reducing care costs. While the company’s revenue grew 17.64% in the last twelve months, InvestingPro data shows it remains in investment mode with negative EBITDA.
TOI operates through three divisions: Patient Services, which contributed $204.9 million (over 50%) of FY2024 revenue; Pharmacy and Dispensary services, which added $179.9 million (46%); and Clinical Trials, which generated $8.6 million (2%).
The company utilizes capitated contracts with third-party payers to treat health plan members based on estimated per-member, per-month costs, while also offering traditional fee-for-service and value-based oncology care options.
Noble Capital believes TOI can benefit from healthcare trends including medical cost containment needs and small medical practice consolidation, valuing the company at 1.25 times estimated FY2026 revenues of $583.4 million for a target market capitalization of $728 million. Currently trading near its 52-week high of $3.78, TOI’s market value stands at $323.75 million, with analyst targets ranging from $6 to $7 per share.
In other recent news, The Oncology Institute reported its financial results for the first quarter of 2025, showing a revenue increase of 10.3% year-over-year to $104.4 million, though earnings per share fell short of expectations at -$0.21. Additionally, The Oncology Institute will become the exclusive oncology provider for over 80,000 Medicaid patients under SilverSummit Healthplan in Nevada, starting July 1. The company has also been included in the Russell 2000® and Russell 3000® indexes following the annual reconstitution of the Russell indexes. Analyst firm B.Riley initiated coverage of The Oncology Institute with a Buy rating and a price target of $6.00, highlighting the company’s unique position in integrating utilization management and oncology care. Similarly, BTIG set a Buy rating with a price target of $7.00, reflecting confidence in the company’s diversified revenue model. These developments indicate significant activity and interest around The Oncology Institute, as it continues to expand its services and market presence.
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