Michael Petusky, an analyst from Barrington, maintained the Buy rating on Option Care Health (OPCH – Research Report). The associated price target is $41.00.
Michael Petusky has given his Buy rating for Option Care Health’s stock based on several factors. His forecast for Q3 revenue is $1.09 billion, indicating approximately 7% top-line growth compared to the same period last year, mirroring the company’s recent solid double-digit percentage growth in chronic therapies and low to mid-single-digit growth in acute therapies. Petusky also expects a gross margin of 22.2%, an improvement from the previous year, factoring in macro challenges like inflation and supply chain issues.
Petusky anticipates the SG&A expense in the third quarter to be around 14.0% of revenue, highlighting that the company has been streamlining its processes and capturing efficiencies, potentially improving this figure. He also projects the company to deliver an EPS of $0.24 in Q3, despite this being the Street-low estimate among analysts, Petusky believes that his estimate could be conservative and the company may meet or exceed the consensus view. Furthermore, his EPS forecasts for FY/23, FY/24, and FY/25 are $1.00, $1.22, and $1.45 respectively, suggesting steady growth. Given these factors, Petusky continues to rate Option Care Health as an OUTPERFORM, with a price target of $41.
According to TipRanks, Petusky is a 4-star analyst with an average return of 5.4% and a 48.38% success rate. Petusky covers the Healthcare sector, focusing on stocks such as Merit Medical Systems, Anika Therapeutics, and Option Care Health.
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Option Care Health (OPCH) Company Description:
Option Care Health, Inc. provides home and alternate site infusion services. The company was founded in 1996 and is headquartered in Bannockburn, IL.
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