Jack Slevin, an analyst from Jefferies, maintained the Buy rating on Astrana Health (ASTH – Research Report). The associated price target was lowered to $44.00.
Jack Slevin has given his Buy rating due to a combination of factors that suggest Astrana Health’s potential for growth and stability. One key aspect is the company’s history of providing conservative guidance, which aligns with their logical projections for fiscal year 2025. Despite some initial concerns about the inclusion of additional general and administrative investments, these are seen as strategic moves that will lead to improvements in the following year. Slevin also highlights that the Medicaid risk is often overestimated, as it constitutes only a small portion of Astrana Health’s EBITDA, and the potential impact is manageable.
Furthermore, Slevin is optimistic about the company’s future, particularly regarding the Prospect deal, which he believes is undervalued by the market. While acknowledging the need for successful execution in both core operations and the integration of Prospect, he sees significant valuation opportunities. The current trading price presents a potentially unique opportunity for long-term investors, reinforcing his Buy rating with a price target of $44.
In another report released on March 3, Bank of America Securities also reiterated a Buy rating on the stock with a $49.00 price target.
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