Option Care Health (OPCH) Reiterated at Market Outperform by Citizens Amid Joint Acquisition Talks

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."

For an analyst ratings summary and ratings history on Option Care Health click here. For more ratings news on Option Care Health click here.

Shares of Option Care Health closed at $23.37 yesterday.

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