In a report released today, Joanna Gajuk from Bank of America Securities reiterated a Buy rating on US Physical Therapy (USPH – Research Report), with a price target of $100.00.
Joanna Gajuk has given her Buy rating due to a combination of factors. While US Physical Therapy’s Q3 results were in line with expectations, the company’s outlook for Q4 is lower than previously predicted. Despite this, Gajuk maintains that the company has potential for growth, particularly due to the potential upside from acquisitions as the company deploys proceeds from its recent equity offering. Furthermore, USPH is making progress on commercial contracts which is expected to help offset the pressure from Medicare rates.
Additionally, the company’s operating cash flow is strong and has improved from the previous year. Even though the company’s Physical Therapy revenues were in line with estimates, the margins declined. However, Industrial Injury Prevention revenues declined, but the margins improved. Based on these factors, Gajuk believes that USPH is a good investment opportunity, hence the Buy rating. Also, Gajuk reduced the price objective from $110 to $100 due to the lower estimates and reduced peer multiples.
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Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of USPH in relation to earlier this year.
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US Physical Therapy (USPH) Company Description:
U.S. Physical Therapy, Inc. operates outpatient physical therapy clinics, which provides pre-and post-operative care and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers and neurological-related injuries. The company was founded in 1990 and is headquartered in Houston, TX.
Read More on USPH:
- USPH Earnings this Week: How Will it Perform?
- U.S. Physical Therapy acquires an injury prevention, ergonomics business for $4M
- U.S. Physical Therapy acquires two physical therapy practices for $13.9M
- U.S. Physical Therapy initiated with an Overweight at JPMorgan
- U.S. Physical Therapy upgraded to Outperform from Market Perform at CJS Securities
