In a report released today, Constantine Davides from JMP Securities maintained a Buy rating on Addus Homecare (ADUS – Research Report), with a price target of $150.00.
Constantine Davides has given his Buy rating due to a combination of factors including Addus HomeCare’s strategic initiatives and valuation metrics. The company is piloting a Personal Care technology initiative in three states, which is expected to enhance patient record management across its service levels and improve operational efficiency. This initiative is part of a broader strategy to create synergies between its clinical and non-clinical operations, potentially unlocking further value.
Additionally, Addus HomeCare’s current trading valuation appears attractive. The stock is trading below its historical median adjusted EBITDA multiple, and despite uncertainties related to Medicaid policy changes, the company is well-positioned for long-term growth. This is due to its critical role in providing cost-effective care that keeps patients out of expensive institutional settings, opportunities from complementary clinical services, and potential future mergers and acquisitions. The price target of $150 is based on a 14x multiple of the 2026 adjusted EBITDA estimate.
According to TipRanks, Davides is an analyst with an average return of -28.1% and a 25.53% success rate. Davides covers the Healthcare sector, focusing on stocks such as AMN Healthcare Services, Option Care Health, and Addus Homecare.