Analyst Joanna Gajuk of Bank of America Securities maintained a Buy rating on US Physical Therapy (USPH – Research Report), boosting the price target to $121.00.
Joanna Gajuk’s rating is based on a combination of strong operational performance and positive outlook for US Physical Therapy. The company has shown impressive momentum, particularly after a brief setback in January due to severe weather conditions. The subsequent recovery in February and March, with volumes reaching all-time highs, indicates robust demand and effective management of clinical staff turnover, which remains below the critical 20% threshold. Moreover, the raised guidance for Medicare rates and the $2.5 million EBITDA increase for the fiscal year provide a solid foundation for the Buy rating. Gajuk anticipates that US Physical Therapy’s strong execution and potential for additional deals could lead to further upside risks to her estimates.
Additionally, US Physical Therapy’s financial health is underpinned by a clean balance sheet and accessible capital, which positions the company favorably for pursuing strategic acquisitions. The active deal pipeline, including the possibility of larger transactions, could contribute to long-term growth. Revenue growth in the Industrial Injury Prevention segment, driven by new client additions and product line expansion, further reinforces the company’s profitability. Gajuk’s analysis also takes into account the normalization of operating costs post-weather impact and the company’s ability to negotiate advantageous commercial contracts. These factors, combined with a Price Objective of $121.00, substantiate Gajuk’s Buy rating for USPH.
USPH’s price has also changed moderately for the past six months – from $82.760 to $103.920, which is a 25.57% increase.
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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:
- U.S. Physical Therapy raises FY24 adjusted EBITDA view to $82.5M-$87.5M
- U.S. Physical Therapy reports Q1 operating EPS 51c, consensus 56c
- Is USPH a Buy, Before Earnings?
- U.S. Physical Therapy acquires IIP services business, physical therapy practice
- U.S. Physical Therapy acquires 50% equity interest in PT practice for $16.4M
