Jefferies Reiterates Buy on Almost Family (AFAM) Following 80% Interest Acquisition in Home Health Business

October 18, 2016 8:52 AM EDT
Get Alerts AFAM Hot Sheet
Price: $40.55 -0.61%

Rating Summary:
    3 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 31 | New: 42
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Jefferies reiterated a Buy rating and $58.00 price target on Almost Family (NASDAQ: AFAM) following the company's acquisition of 80% interest in CYH's home health business. AFAM will be the nation's 3rd largest home health provider upon completion of the CYH deal in Q4, which will add $170MM of home health revenue and $30MM of hospice revenue.

Analyst Brian Tanquilut commented, "We have a positive view on AFAM shares given our belief that the stock is meaningfully undervalued (12x P/E, 8.5x EV/EBITDA), particularly given its fairly predictable earnings power, the company's position as a leading consolidator in the highly attractive home nursing space, and accelerating LT growth outlook. We also believe that AFAM's acquisition of CYH's home health assets is very accretive (+19% to FY17 EPS) and isn't adequately reflected in the stock."

For an analyst ratings summary and ratings history on Almost Family click here. For more ratings news on Almost Family click here.

Shares of Almost Family closed at $38.75 yesterday.



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