BrightSpring Health upgraded to Buy from Hold at Deutsche Bank

Deutsche Bank upgraded BrightSpring Health to Buy from Hold with an unchanged price target of $11.50. The stock is down 14% since last week’s initiation, and with the company’s fundamental outlook unchanged and the target price implying 24% upside from current levels, an upgrade is warranted ahead of its first earnings release as a public company on Thursday, the analyst tells investors in a research note. The firm says BrightSpring is a “diverse and complex business,” which has weighed on shares out of the gate given the limited understanding of the multiple business lines and visibility into historical performance. Deutsche has “reasonably strong conviction” in 6% organic annual EBITDA growth for BrightSpring over the next two years, with potential upside from conservative initial assumptions. The stock is “too cheap” and provide an attractive entry point for investors with a mid- to long-term horizon.