SVB Securities says Privia Health's new ACOs could drive savings

Privia Health

18/01/2023 17:22

** SVB Securities sees Privia Health Group's  PRVA.O  new
Accountable Care Organizations (ACO) contributing $10 mln in
shared savings and ~$4 mln, or 6%, to EBITDA in 2023 
    ** PRVA launched two new ACOs in Delaware and North Carolina
on Tuesday, which will be participating in the government-backed
Medicare Shared Savings Program (MSSP)
    ** ACOs are collaborative groups of doctors, hospitals, and
other health care providers, which work to ensure that patients
get access to right care when needed, while avoiding duplication
of services
    ** PRVA continues to benefit from growing consumer
awareness, carries noticeable business momentum, and remains
reasonably inexpensive relative to its growth rate - brokerage
    ** Brokerage confident about PRVA beating 2023 forecasts
after accounting contributions from the new ACOs
    ** Brokerage reiterates 'outperform' rating, maintains $39
PT
    ** All 15 brokerages covering PRVA, rate the stock "buy" or
higher; their median PT is $41 - Refinitiv
    ** Stock has risen 22% in last 12 months
 (Reporting by Aditya Samal)
 ((Aditya.Samal@thomsonreuters.com;))