Privia Health Group (PRVA – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on March 13. Analyst Whit Mayo from Leerink Partners reiterated a Buy rating on the stock and has a $30.00 price target.
Whit Mayo has given his Buy rating due to a combination of factors that suggest stability and growth potential for Privia Health Group. One of the key reasons is the recent announcement by CMS regarding the termination of certain Medicare payment models, including the Maryland Total Cost of Care model, which Privia participates in. Despite this change, Mayo believes there will be no significant impact on Privia’s earnings for 2025, as the company is expected to transition to other models like MSSP and the Primary Care AHEAD program.
Furthermore, Mayo highlights the minimal contribution of the Maryland TCOC model to Privia’s overall business, suggesting that its termination will not materially affect the company’s financial outlook. He expresses confidence in the sustainability of the MSSP program, citing its bipartisan support and proven success in generating savings and engagement over the past decade. This, along with Privia’s diversified business model and balanced approach between fee-for-service and value-based care, underpins Mayo’s positive outlook and Buy rating for the stock.
According to TipRanks, Mayo is a 3-star analyst with an average return of 2.3% and a 45.81% success rate. Mayo covers the Healthcare sector, focusing on stocks such as Pediatrix Medical Group, Acadia Healthcare, and HCA Healthcare.
In another report released on March 5, BTIG also maintained a Buy rating on the stock with a $35.00 price target.
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