In a report released on March 7, Whit Mayo from Leerink Partners reiterated a Buy rating on BrightSpring Health Services, Inc. (BTSG – Research Report), with a price target of $26.50.
Whit Mayo has given his Buy rating due to a combination of factors that highlight BrightSpring Health Services, Inc.’s strong performance and growth potential. The company experienced a robust year in 2024, marked by significant growth in pharmacy and specialty sectors, improved provider margins, and effective execution of its strategic goals. The sale of certain assets has also facilitated debt reduction and allowed BrightSpring to reinvest in more lucrative and rapidly expanding business areas.
BrightSpring’s pharmacy segment is benefiting from multiple favorable trends, including a 35% increase in specialty Rx growth and a 42% rise in revenue within specialty and infusion. The company is also seeing strong oncology growth, consistent new wins, and a positive outlook for infusion services. Additionally, provider revenues and cash flow have shown notable improvements, with increased revenues and margins. These factors, combined with raised EBITDA forecasts and a stable price target, underpin Mayo’s confidence in the company’s future performance.
In another report released on March 6, Bank of America Securities also reiterated a Buy rating on the stock with a $25.00 price target.
Based on the recent corporate insider activity of 25 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 BTSG in relation to earlier this year.