Analyst Joanna Gajuk of Bank of America Securities maintained a Buy rating on Chemed (CHE – Research Report), with a price target of $640.00.
Joanna Gajuk has given her Buy rating for Chemed’s stock (CHE) due to a series of optimistic indicators within the company’s operations, particularly its hospice business Vitas. She acknowledges a strong recovery at Vitas, driven by an effective retention program that has resulted in improved staff turnover rates and a sequential build in the patient census. This operational strength, combined with the company’s confidence in continued volume growth, underpins her positive outlook on the stock.
Furthermore, Gajuk’s recommendation is bolstered by industry-wide growth expectations and Chemed’s strategic openness to acquisitions that promise to enhance market presence. She notes the hospice industry’s potential for mid- to high-single-digit growth rates, powered by demographic trends, increasing penetration, and an earlier shift towards hospice care. Gajuk also points out Chemed’s interest in acquiring sizable hospice agencies in certain markets, aligning with its full-service offering strategy, which could further solidify the company’s market position. These factors collectively form the basis for her Buy rating on Chemed.
Gajuk covers the Healthcare sector, focusing on stocks such as Option Care Health, Addus Homecare, and Chemed. According to TipRanks, Gajuk has an average return of -3.7% and a 50.00% success rate on recommended stocks.
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Chemed (CHE) Company Description:
Chemed Corp. engages in the provision of healthcare and maintenance services. It operates through the following segments: VITAS and Roto-Rooter. The VITAS segment offers hospice and palliative care services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers. The Roto-Rooter segment includes plumbing, drain cleaning, water restoration, and other related services to residential and commercial customers. The company was founded in 1970 and is headquartered in Cincinnati, OH.
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