Oppenheimer analyst Michael Wiederhorn lowered the firm’s price target on Addus HomeCare to $118 from $130 and keeps an Outperform rating on the shares. The firm notes that Addus produced strong Q1 results due to improving trends on the PC business, but the trajectory of longer-term earnings will likely be dictated by the future of the HCBS cost provision. Management remains constructive on this issue, and hopes to work with CMS on an appropriate percentage and to clarify the definition to include other costs affecting the caregiver, Oppenheimer adds. Given that the firm expects substantial improvements to the regulation, it would be a buyer of Addus at the attractive current multiple.
Published first on TheFly
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