William Blair analyst Ryan Daniels has maintained their neutral stance on INNV stock, giving a Hold rating on October 31.
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Ryan Daniels’s rating is based on InnovAge Holding’s solid fiscal first-quarter results, which demonstrated significant revenue growth and improved profitability. The company reported a notable increase in its center-level contribution margin and adjusted EBITDA, surpassing market expectations. Despite these positive developments, Daniels maintains a Hold rating due to the stock’s current valuation, which he believes reflects a balanced risk/reward profile.
InnovAge’s consistent growth and profitability, along with its potential to benefit from favorable industry trends, are acknowledged. However, Daniels emphasizes that the stock’s valuation, approximately 10 times EBITDA, aligns with its peers in the value-based and senior care sectors. He suggests that further progress in margin expansion and sustained growth are essential to enhance investor confidence and potentially reconsider the stock’s rating.
In another report released on October 31, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $4.50 price target.