Raymond James Upgrades Aveanna Healthcare Holdings Inc (AVAH) to Outperform

Raymond James analyst John Ransom upgraded Aveanna Healthcare Holdings Inc (NASDAQ: AVAH) from Market Perform to Outperform with a price target of $9.00.

The analyst comments: "We are upgrading shares of AVAH from Market Perform to Outperform, following 2Q results that were well above company guidance and consensus forecasts, and we are establishing a new price target of $9/share, or 10.1x our new 2027 EBITDA estimate of $320M. Our upgrade thesis is as follows: 1) the proforma leverage on our new 2027 forecast of $320M is now 4.2x, well below 2023 leverage of ~10x, and we expect further deleveraging as EBITDA grows and FCF is applied to debt reduction; 2) the current valuation of 8.2x our new 2027 EBITDA estimate has upside based on the low-double-digit multiples from the higher quality post-acute providers; and 3) we also note that we think that a potential debt refinancing is an option based on the company’s dramatically improved credit profile (especially with its second lien debt currently at SOFR + 700 bp), which we think could add $10-15M to EPS/FCF."

For an analyst ratings summary and ratings history on Aveanna Healthcare Holdings Inc click here. For more ratings news on Aveanna Healthcare Holdings Inc click here.

Shares of Aveanna Healthcare Holdings Inc closed at $6.14 yesterday.

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