CS cuts Amedisys' PT on low unbundled service revenue, labor issues

Amedisys

23/01/2023 15:41

** Brokerage Credit Suisse cuts price target of home health
firm Amedisys Inc  AMED.O  to $115 from $140
    ** Volumes in fee-for-service model to continue to remain
challenged in 2023 due to outsized growth in Medicare Advantage
enrollment, brokerage says citing discussions with management
    ** Fee-for-service is a payment method in which healthcare
providers including physicians are paid separately for each
unbundled service  
    ** Labor supply not expected to improve in 2023 as wage
inflation persists, which leads to a conservative volume growth
outlook - brokerage
   ** Brokerage lowers AMED's 2023 EBITDA estimates to $270 mln
vs prior est. $291 mln; Refinitiv mean est. stands at $266.6 mln
    ** Brokerage says home health sector has shown weak recent
performance due to reimbursement pressures and wage inflation
but AMED maintains its strong positioning in the marketplace;
maintains 'outperform' rating
    ** 8 of 15 brokerages rate the stock "buy" or higher, 5
"hold" and 2 "sell" or lower; their median PT is $115 -Refinitiv
    ** Stock has declined 29% in last 12 months
 (Reporting by Aditya Samal)
 ((Aditya.Samal@thomsonreuters.com;))