Barrington analyst Michael Petusky maintained a Buy rating on Option Care Health today and set a price target of $38.00.
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Michael Petusky has given his Buy rating due to a combination of factors that highlight Option Care Health’s strategic positioning and growth potential. The company has successfully captured a significant share in the acute therapy market, capitalizing on the exit of a major competitor. This has allowed Option Care Health to transition approximately 30% of available business to its services, with expectations to continue outpacing the market growth rate.
Additionally, the expansion of its advanced practitioner model is seen as a strategic move to enhance care delivery to complex patients and broaden access to Medicare patients, which is likely to strengthen its partnerships with payors. The growing network of ambulatory infusion facilities is also contributing to increased productivity and utilization. Furthermore, the company’s profits are largely insulated from the recent most favored nation pricing initiative, providing some stability amidst regulatory changes. Despite potential headwinds from exposure to JNJ’s Stelara, the overall outlook remains positive, supporting the Buy rating with a price target of $38.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $31.00 price target.
Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of OPCH in relation to earlier this year.