AdaptHealth (AHCO – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Whit Mayo from Leerink Partners maintained a Buy rating on the stock and has a $14.00 price target.
Whit Mayo has given his Buy rating due to a combination of factors that highlight AdaptHealth’s promising outlook. The company’s fourth-quarter results for 2024 demonstrated solid execution and progress, particularly within the diabetes segment, which showed sequential revenue improvement and reduced attrition rates. This progress is supported by new leadership and strategic organizational changes that have enhanced transparency and accountability.
Additionally, the sleep segment continues to perform robustly, with significant increases in new starts and resupply orders. The respiratory segment also showed resilience with record census levels. These positive trends have led to an increase in EBITDA forecasts for 2025 and 2026, as well as a raised price target from $12 to $14. Collectively, these factors suggest a favorable growth trajectory for AdaptHealth, justifying the Buy rating.
In another report released yesterday, Canaccord Genuity also maintained a Buy rating on the stock with a $14.00 price target.
Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AHCO in relation to earlier this year.