Bank of America Securities analyst Joanna Gajuk reiterated a Buy rating on Addus Homecare (ADUS – Research Report) today and set a price target of $147.00.
Joanna Gajuk’s rating is based on Addus HomeCare’s strong financial performance and growth potential. The company’s adjusted EBITDA for the fourth quarter of 2024 was in line with expectations, and its hospice and home health segments showed better-than-anticipated revenue growth. Despite a deceleration in Personal Care Services, the overall growth profile remains attractive, supported by a robust pipeline of deals.
Furthermore, Addus HomeCare’s valuation is compelling, with a price objective set at $147, significantly higher than the current price of $108.84. The company’s ability to maintain its EBITDA estimates for 2025 and 2026, even after accounting for the Gentiva acquisition and exit from the New York market, reinforces confidence in its future performance. These factors contribute to the Buy rating, highlighting the potential upside for investors.
Based on the recent corporate insider activity of 48 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 ADUS in relation to earlier this year.
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