Update shared on13 Sep 2025
Fair value Increased 6.62%Analysts have raised their outlook on Aveanna Healthcare Holdings due to greater confidence in leverage normalization, improved earnings visibility, and a stronger competitive position within the Medicaid sector, resulting in a higher consensus price target from $7.56 to $8.06.
Analyst Commentary
- Improved leverage trajectory with greater visibility, supported by better-understood impacts from interest rate swaps and caps.
- Outperformance in year-to-date earnings, enabling an accelerated pathway toward a reasonable leverage ratio.
- Resolution of prior regulatory concerns and a "thesis changing quarter" signaling renewed confidence in the business model.
- Demonstrated positive differentiation within the Medicaid sector, supporting a superior competitive position.
- Materially higher earnings estimates prompted by strong operating performance and reduced risk outlook.
What's in the News
- Raised full-year 2025 revenue guidance to over $2.3 billion, up from the previous estimate of over $2.15 billion.
- Reported an impairment loss of $153,000 for Q2 on goodwill, intangible, and other long-lived assets, compared to $80,000 in the prior year.
Valuation Changes
Summary of Valuation Changes for Aveanna Healthcare Holdings
- The Consensus Analyst Price Target has risen from $7.56 to $8.06.
- The Future P/E for Aveanna Healthcare Holdings has risen from 15.11x to 16.15x.
- The Discount Rate for Aveanna Healthcare Holdings remained effectively unchanged, moving only marginally from 7.10% to 7.18%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.