On Friday, Macquarie initiated coverage on Addus HomeCare Corporation (NASDAQ:ADUS), assigning an Outperform rating to the stock and setting a price target of $136.00. The firm's analysis highlights the company's positioning within the expanding home and community-based services (HCBS) sector, which is increasingly supported by various levels of government.
The move to initiate coverage comes as the healthcare industry sees a significant shift towards long-term care that emphasizes personalized support in home settings. This shift is supported by federal, state, and local government investments, positioning Addus HomeCare as a beneficiary of the growing focus on home and community-based services.
Addus HomeCare, known for providing personal care services (PCS), stands to gain from the ongoing transformation in the approach to long-term care. The company's role in offering services that enable individuals to receive care in their own homes aligns with current trends and government backing.
The price target of $136.00 set by Macquarie reflects confidence in Addus HomeCare's prospects amid the expansion of HCBS. The Outperform rating suggests that the firm views the stock as likely to perform better than the broader market or its sector in the foreseeable future.
Macquarie's coverage initiation and positive outlook for Addus HomeCare underscore the company's strategic advantage in an evolving healthcare landscape that favors home-based care solutions. The support from various government levels further solidifies the company's potential for growth in this sector.
In other recent news, Addus HomeCare Corporation has announced a public offering of 1,500,000 shares of its common stock, with potential additional shares for underwriters. The proceeds, estimated at $81.4 million, are intended to repay Addus's current credit facility debt and fund corporate functions such as acquisitions. In line with this, Addus recently acquired Gentiva's personal care assets, a move projected to contribute approximately $280 million in annualized revenues.
TD Cowen has raised its price target for Addus HomeCare to $128, maintaining a Buy rating. This adjustment was made following the finalization of the Medicaid Access Rule and an anticipated Personal Care rate hike in Illinois, which are expected to enhance the company's EBITDA.
Addus's shareholders have also reelected three Class III directors and ratified PricewaterhouseCoopers LLP as the independent auditor for fiscal year 2024. Oppenheimer has increased its earnings forecasts for Addus HomeCare, anticipating a 5.5% increase in Illinois rates starting in 2025. These are among the recent developments that highlight the company's strategic moves and financial prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.