On Friday, Stephens, a financial services firm, increased its price target for Addus HomeCare (NASDAQ:ADUS) shares, a provider of comprehensive home care services. The new target is set at $128, up from the previous $120, while maintaining an Overweight rating on the stock.
The firm's analyst highlighted the strength of the Illinois market as a significant factor for the company's positive performance. Despite the state's known fiscal issues, it continues to be a profitable area for Addus HomeCare.
The supportive reimbursement structure for personal care in Illinois aligns with the company's long-term strategy, which shows the most success when all three of its service lines are implemented together.
Illinois is a substantial contributor to Addus HomeCare's revenues, representing approximately 21.9% of the company's hospice revenues and 17.4% of its home health revenues in the first quarter of 2024.
The analyst's optimistic view is reflected in the raised price target and reaffirmed Overweight rating, signaling confidence in the company's ongoing growth and performance in key markets.
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