JPMorgan Starts Almost Family (AFAM) at Neutral, Valuation Is Too Rich

JPMorgan initiates coverage on Almost Family (NASDAQ: AFAM) with a Neutral rating and a price target of $54.00.

Analyst Gary Taylor is concerned with valuations and the home-health-groupings-model. The analyst says the current AFAM valuation is not sufficiently attractive enough to warrant an Overweight view noting the segment valuation multiples remain the highest in the provider universe noting the company trades at 11.2x FY 2018 estimate EBITDA and 19.2x FY 2018 estimate EPS compared the medium in the sector of 11.6x and 21.6x respectively. These multiples are too high to generate further outperformance for shareholders according to a morning research note.

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 $50.60 Friday.

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