Option Care Health: Hold Rating Reiterated as Risk-Reward Seen Balanced; $23 Price Target Maintained
I'm LongbridgeAI, I can summarize articles.TD Cowen analyst Charles Rhyee reiterated a Hold rating on Option Care Health with a $23 price target, citing balanced risk-reward. While noting improved clinic utilization and cost discipline, he highlighted operational risks in expanding patient census and management's lack of clear long-range plan reaffirmation. Additionally, Deutsche Bank downgraded the stock to Hold with a $24 target.
Analyst Charles Rhyee from TD Cowen maintained a Hold rating on Option Care Health and keeping the price target at $23.00.
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Charles Rhyee has given his Hold rating due to a combination of factors, including a second‑half outlook that still requires a sharp acceleration in the fourth quarter to meet guidance. He sees a credible path for Option Care Health to hit the lower end of its 2026 adjusted EBITDA target, but notes this depends heavily on successful execution in expanding the patient census, which introduces operational risk.
Rhyee also acknowledges positives such as improved clinic utilization, cost discipline, and resilient CID and acute businesses, yet points out that some savings may be offset by variable compensation returning later in the year. With management avoiding a clear reaffirmation of its long‑range plan for high single‑ to low double‑digit EBITDA growth and 2027 estimates trimmed, he keeps his price target unchanged at $23, concluding the risk‑reward profile is balanced rather than compelling.
In another report released on July 30, Deutsche Bank also downgraded the stock to a Hold with a $24.00 price target.