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Investing.com - Truist Securities has reiterated its Buy rating and $40.00 price target on Option Care Health (NASDAQ:OPCH), citing attractive core trends across segments and strong positioning amid robust demand. This target represents a significant upside from the current price of $27.04, aligning with the broader analyst consensus that remains bullish with an average recommendation of 1.55 (Strong Buy).
The firm remains bullish on Option Care Health following management meetings that highlighted the company’s portfolio breadth and favorable market position. Truist Securities noted that environmental cost and utilization pressures should further drive site of care redirection initiatives. The company’s solid financial health is evident in its $5.53 billion in revenue over the last twelve months, with impressive 15.79% revenue growth.
The research firm pointed to several factors supporting its positive outlook, including bed day management, AIS, advanced practitioner utilization, and data/analytics capabilities that position the company well in the current healthcare landscape. InvestingPro data shows the company appears undervalued based on its Fair Value assessment, with management aggressively buying back shares – one of several ProTips available to subscribers.
Truist Securities acknowledged near-term focus will likely remain on Stelara impact into 2026, but maintained its bullish stance on core business trends and the company’s strong free cash flow generation.
The firm expects Option Care Health to return to more normalized adjusted EBITDA growth by 2027 and views the current valuation as offering an attractive risk/reward profile.
In other recent news, Option Care Health reported its third-quarter earnings for 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.45, beating the forecasted $0.43. Additionally, Option Care Health exceeded revenue projections, reporting $1.44 billion against an anticipated $1.41 billion. Despite these positive results, Citizens lowered its price target for Option Care Health from $38.00 to $36.00, while maintaining a Market Outperform rating. The research firm cited valuation concerns but noted the company’s strong cash flow position. Citizens highlighted that management is targeting operating cash flow of at least $320 million in 2025. The firm now expects free cash flow generation of $286 million in 2025, with initial capital expenditure assumptions being conservative. These developments are important for investors to consider when evaluating Option Care Health’s financial outlook.
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