The Oncology Institute stock rating reiterated at Buy by BTIG

Published 14/08/2025, 11:24
The Oncology Institute stock rating reiterated at Buy by BTIG

Investing.com - The Oncology Institute Inc. (NASDAQ:TOI) received a reiterated Buy rating from BTIG on Wednesday, maintaining its $7.00 price target following the company’s second-quarter earnings report. According to TOI%7D%7D">InvestingPro data, analyst targets range from $6 to $8, with the stock currently trading near $4.10, suggesting significant upside potential. The company’s market capitalization stands at approximately $370 million.

TOI reported second-quarter revenue of $119.8 million, representing 22% year-over-year growth and exceeding both BTIG and consensus estimates of $112.6 million and $113.3 million, respectively. The company posted an adjusted EBITDA loss of $4.1 million, which was better than BTIG’s forecast of a $4.7 million loss and the consensus estimate of a $4.9 million loss. InvestingPro analysis shows the company has maintained strong momentum, with an impressive year-to-date return of over 1,200%.

Following these results, TOI raised its 2025 revenue guidance, now expecting to reach the higher end of its previously stated range of $460-480 million. The company reaffirmed its EBITDA guidance range of negative $8-17 million and maintained its expectation of achieving positive EBITDA by the end of 2025. With a healthy current ratio of 1.62 and an overall Financial Health Score of "GOOD" from InvestingPro, the company appears well-positioned to execute its growth strategy. Discover 8 more exclusive InvestingPro Tips and comprehensive analysis in our detailed Pro Research Report.

BTIG attributed the revenue and earnings outperformance primarily to strength in TOI’s dispensing business, noting that both fee-for-service and dispensing revenue benefit from higher volumes and rising oncology drug prices. The research firm highlighted that while health plans face margin pressure from increasing oncology drug costs, this trend actually benefits TOI’s business model. The company’s revenue growth remains robust at 17.5% over the last twelve months.

The research firm also expressed approval of TOI’s approach to risk-based PMPM (per member per month) capitated arrangements, where clinicians maintain high control over services, care delivery locations, and medication dispensing, which drives margin improvement and reduces costs for health plans.

In other recent news, The Oncology Institute reported its Q2 2025 earnings with a significant increase in revenue. The company achieved a consolidated revenue of $119.8 million, reflecting a 21.5% growth compared to the same period last year. Despite an adjusted EBITDA loss of $4.1 million, this marks a considerable improvement from the previous year’s loss of $8.7 million. These developments indicate a positive trajectory in the company’s financial performance. Additionally, shares of the company remained stable following the earnings report. While the financial results are promising, no analyst upgrades or downgrades were reported in the recent articles. Investors may find these earnings figures crucial as they assess the company’s future potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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