BofA raised the firm’s price target on Addus HomeCare to $135 from $127 and keeps a Buy rating on the shares after the company announced it will acquire personal care assets from privately-held Gentiva for $350M. The firm, which estimates the deal would add over 20% to Addus’ annual EBITDA and 4% to EPS, says it will update its estimates when the deal closes, but cites a higher multiple given the potential upside to estimates for its increased price target.
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Read More on ADUS:
- Addus Homecare Expands Footprint with Gentiva Acquisition
- Addus HomeCare management to meet virtually with Stephens
- Addus HomeCare to acquire personal care operations of Gentiva for $350M
- Addus HomeCare price target raised to $130 from $118 at Oppenheimer
- Addus HomeCare price target raised to $128 from $120 at Stephens