In a report released today, Joanna Gajuk from Bank of America Securities reiterated a Buy rating on US Physical Therapy (USPH – Research Report), with a price target of $112.00.
Joanna Gajuk’s rating is based on several key factors that highlight the potential growth and resilience of US Physical Therapy. The company’s strong organic volume growth, which accelerated to 3.1%, and better-than-expected revenues are significant contributors to this positive outlook. Despite facing a Medicare rate reduction, the company has managed to maintain impressive growth projections, with the 2025 adjusted EBITDA guidance indicating double-digit growth.
Moreover, the company’s strategic acquisitions and improvements in non-Medicare rates are expected to offset the 6% headwind caused by the Medicare rate cut. The Industrial Injury Prevention segment also shows robust growth, with organic revenue increasing by 18.5%, reflecting the company’s successful expansion of client relationships. These factors, combined with a price objective of $112, support the Buy rating as US Physical Therapy continues to demonstrate solid growth potential.
Gajuk covers the Healthcare sector, focusing on stocks such as UnitedHealth, Humana, and Select Medical. According to TipRanks, Gajuk has an average return of 0.2% and a 53.90% success rate on recommended stocks.