Citizens analyst Constantine Davides reiterated a Market Outperform rating and $32.00 price target on Option Care Health (NASDAQ: OPCH).

The analyst commented, "We maintain our Market Outperform rating on Option Care Health (OPCH) following a Monday report in the Financial Times that McKesson (MCK, NC) and CD&R (private) were in advanced talks to jointly acquire OPCH. A deal could be reached as early as Tuesday, but discussions could still "fall apart" per the report. The reported transaction has CD&R acquiring 51% of OPCH while MCK would acquire the remaining 49%, with MCK potentially having an option to acquire CD&R's stake at a later date. The report suggests a deal value of "more than $5 billion", suggesting a likely per-share equity price of ~$27–$29. The midpoint of this range would value OPCH at ~11x our 2026 EBITDA estimate. We believe an acquisition of OPCH, the country's largest independent alternate site infusion platform, by MCK would produce logical synergies with MCK's sizable drug distribution/specialty business, while also potentially dovetailing with other elements of MCK's growing services operations."

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Shares of Option Care Health closed at $23.37 yesterday.