Update shared on 02 Dec 2025
The consensus analyst price target for Option Care Health has been lowered from $38 to $36. Analysts express cautious optimism, noting strong recent results while highlighting limited immediate share catalysts and conservative future growth assumptions.
Analyst Commentary
Analyst perspectives on Option Care Health present a balanced outlook, with both optimism for future growth and caution over near-term catalysts reflected in recent research notes.
Bullish Takeaways- Bullish analysts highlight Option Care Health's leading scale, strong market share, and comprehensive therapeutic portfolio as key strengths that support long-term growth.
- Recent revenue and gross profit have exceeded expectations, which underscores the company’s capacity for strong operational execution.
- Deployment of capital toward share repurchases is viewed as a prudent strategy that enhances shareholder value and leverages the company’s balance sheet.
- Optionality from potential capital deployment and a substantial discount to multiples seen in recent industry transactions are considered advantageous for future valuation.
- Bearish analysts point to the current valuation, noting that expectations for long-term growth may already be priced into consensus estimates.
- Limited immediate share catalysts create uncertainty around the pace at which shares might re-rate higher in the near term.
- A conservative approach to future growth guidance reflects caution in the operating environment and potential for more moderate execution ahead.
- The Hold ratings are attributed in part to a perceived lack of obvious drivers that could propel shares significantly higher in the short run.
What's in the News
- Barron's highlights Option Care Health shares as "undervalued," citing the company's expansion in at-home medical services and a potential 37% increase in stock price. This is noted despite recent flat performance and industry pricing changes. (Barron's)
- The company confirmed its outlook for 2025 and projects net revenue between $5.60 billion and $5.65 billion for the full year. (Company Guidance)
- Option Care Health has actively pursued acquisitions, integrating the Intramed Plus deal and continuing to seek strategic tuck-in and near adjacency opportunities. (Key Developments)
- From July to September 2025, the company repurchased 2.2 million shares for $62.46 million and completed its $212 million buyback program announced earlier in the year. (Key Developments)
Valuation Changes
- Fair Value remains unchanged at $35.30 per share.
- Discount Rate has decreased marginally from 6.96% to 6.96%.
- Revenue Growth forecast is slightly lower, moving from 8.62% to 8.61%.
- Net Profit Margin has edged up from 4.01% to 4.01%.
- Future P/E Ratio holds steady at approximately 21.28x.
Disclaimer
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