Infusion Therapies And AI Will Transform Healthcare Delivery

Analysts have slightly lowered their average price target for Option Care Health to $37.90 from $38.78. This change reflects updated expectations for profit margins and revenue growth, while recognizing that the company's steady performance is already accounted for in current valuations.

Analyst Commentary

Recent research coverage of Option Care Health highlights both bullish and bearish perspectives, weighing consistent execution against tempered expectations for near-term share gains.

• Bullish analysts have raised price targets in response to strong quarterly results and continued share gains.
• The company is recognized as a leading provider within the home and alternate site infusion market, which supports the case for ongoing long-term growth.
• Its financial position and balanced approach to capital deployment are seen as strengths, providing flexibility for future opportunities.
• Consistent execution is viewed positively and supports confidence in meeting long-term growth targets.

• Bearish analysts note that the company’s solid performance may already be priced into current valuations and this could limit upside potential.
• There is a lack of near-term catalysts identified that could drive significant share appreciation.
• Growth expectations are largely in line with consensus estimates, which constrains arguments for outperformance.
• Some caution is expressed regarding the potential for rapid acceleration beyond already established growth trajectories.

What's in the News

• Barron's highlights Option Care Health as "undervalued," citing strong demand for at-home medical services and a de-risked therapeutic portfolio. The report notes a potential 37% upside despite recent flat share performance. The company has downplayed recent changes in drug pricing, such as those for Stelara, describing these as opportunities for new investors (Barron's).
• Meenal Sethna has been appointed as Chief Financial Officer, effective October 1, 2025. She will succeed Mike Shapiro, who will transition to a Strategic Advisor role during the handover period.
• A strategic relationship has been formed with Quince Therapeutics to enable broad patient access and streamlined administration of Quince’s lead asset, pending further study results and regulatory approval.
• A $50 million share repurchase was completed from April to June 2025, bringing total buybacks since January 2025 to $150.01 million.
• Full-year 2025 earnings guidance has been issued, with net revenue expected to range between $5.50 billion and $5.65 billion.

Valuation Changes

• Consensus Analyst Price Target has decreased from $38.78 to $37.90, reflecting a modest reduction.
• Discount Rate remains unchanged at 6.78%.
• Revenue Growth expectations have risen slightly, moving from 8.78% to 9.27%.
• Net Profit Margin forecast has edged down from 4.43% to 4.25%.
• Future P/E ratio is relatively stable and has increased marginally from 21.59x to 21.70x.