The Oncology Institute assumed with a Buy at Jefferies

Jefferies assumed coverage of The Oncology Institute with a Buy rating and $2.50 price target. The firm’s long-term conviction in the value-based care opportunity remains intact due to low penetration, payor and government focus on transitioning to value-based frameworks, and an unchanged underlying need for better and lower cost healthcare. However, the analyst is “realistic on near-term headwinds” facing the Medicare Advantage space and says challenges in the public value-based care world “warrant a more selective stance.” Jefferies names Privia Health (PRVA) and Apollo Medical (AMEH) its top picks saying they are stable, high growth compounders with best-in-class free cash flow profiles.