Nutex Health (NUTX) PT Raised to $150 at Benchmark

Benchmark analyst Bill Sutherland raised the price target on Nutex Health (NASDAQ: NUTX) to $150.00 (from $60.00) while maintaining a Buy rating.

The analyst commented, "In 4Q24, Nutex printed a very big Adj EBITDA beat of $94M as the company for the first time reported revenue from the successful recovery of out-of-network claims under the No Surprise Act (NSA) arbitration process. (Following the NSA’s start in 1/22, Nutex’s average payments declined ~30% as payors often paid below the median contracted rate, known as QPA.) With only limited success improving payments through negotiations, Nutex leaned into arbitration beginning in mid-24 as the process was streamlined by HHS. Nutex now is submitting 60-70% of visits to arbitration and achieved a more than 80% success rate with claims in 2024. Nutex is continuing this effort in 2025, and we have reflected a conservative view of its impact in our revised model. Nutex’s outlook is also benefiting from initiatives to increase patient volumes with a focus on higher value services point to continued growth and margin expansion. On our revised FY25 model, the PT of $150 ($60 prior) implies 6.3x EV/EBITDA, a more than two-turn discount to the peer group median."

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