Bank of America Securities analyst reiterated a Hold rating on Privia Health Group today and set a price target of $27.00.
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Merrill Lynch has given its Hold rating due to a combination of factors that reflect both potential growth and existing uncertainties. The recent acquisition of an ACO business from Evolent Health is expected to enhance Privia Health Group’s EBITDA growth visibility by 2026, as the acquired entity has demonstrated strong performance in saving Medicare funds. This acquisition is anticipated to add significant synergies by expanding Privia’s reach to 1.5 million value-based care lives across various programs, which could integrate well with Privia’s existing services and technology.
Despite these positive developments, Merrill Lynch maintains a Neutral stance, likely due to the current stock price being close to its price objective of $27.00 USD, with the stock trading at $23.48 USD. Additionally, while Privia has shown strong 2024 MSSP results and increased its 2025 EBITDA guidance, the market valuation and potential risks associated with integrating the new acquisition may warrant a cautious approach. Therefore, the Hold rating reflects a balanced view of the company’s growth prospects against its current market valuation and the execution risks involved.