Analyst Ryan Langston from TD Cowen maintained a Hold rating on P3 Health Partners (PIII – Research Report) and keeping the price target at $0.25.
Ryan Langston has given his Hold rating due to a combination of factors related to P3 Health Partners’ financial outlook and operational strategies. The company is expected to require additional capital infusions in the coming years, with an estimated $35 million needed in the latter half of 2025 and another $35 million in 2026. Despite management’s optimism about achieving significant operational improvements and a better macro environment in the Medicare sector, the financial guidance for 2025 remains challenging with an Adjusted EBITDA range of ($35 million) to +$5 million.
Furthermore, P3 Health Partners has made progress in re-contracting with payer partners, but the process will continue into 2027. The company’s financial results for the fourth quarter of 2024 were below expectations, with an Adjusted EBITDA of ($68 million), significantly lower than the estimated ($32 million). Although there are positive developments, such as increased at-risk membership expectations and network changes, the need for additional capital and the current financial performance contribute to the Hold rating, with a price target remaining at 25 cents.
Langston covers the Healthcare sector, focusing on stocks such as Acadia Healthcare, Universal Health, and Addus Homecare. According to TipRanks, Langston has an average return of -3.7% and a 51.72% success rate on recommended stocks.