On Thursday, Evercore ISI adjusted its outlook on shares of Privia Health Group Inc (NASDAQ:PRVA), increasing the price target to $22 from the previous $20, while keeping an Outperform rating on the stock. The firm highlighted Privia Health's consistent performance and strategic approach to risk management in the healthcare industry.
Privia Health's steady approach to adopting risk in managed care arrangements has shown to be effective, according to Evercore ISI. The company's recent financial results surpassed expectations and prompted an upward revision of future projections. This success is attributed to Privia Health's consistent execution over the past several quarters.
The firm noted that with a clear view of the provider count through the end of the year and sustained strength in utilization rates, Privia Health's revenue forecasts appear to be not only within reach but potentially conservative. This perspective is reinforced by the company's ongoing execution and delivery of financial results.
Additionally, Privia Health's growing commercial business is expected to contribute positively to the second half of the year's overall margin profile. This is further supported by the company's strategic move away from certain capitated contracts earlier in the year, which is anticipated to benefit the financial standing of the company.
Evercore ISI concluded its assessment by reiterating the Outperform rating, with the revised price target of $22 reflecting approximately 24 times the projected FY25 EBITDA for Privia Health. The firm's commentary underscores the company's measured and effective strategy in the healthcare sector, which continues to yield positive financial outcomes.
In other recent news, Privia Health Group Inc. has announced the resignation of Bill Sullivan from its Board of Directors and Audit Committee. The company has also reported a strong financial performance, with a 7.4% year-over-year increase in practice collections and an over 18% rise in adjusted EBITDA. Meanwhile, Truist Securities has revised its price target for Privia Health, reducing it from $28 to $24, while maintaining a "Buy" rating on the stock.
In the wake of these developments, Privia Health's financial model has been updated, leading to a slight increase in Practice Collections estimates for fiscal years 2024 and 2025. The revenue forecasts for these periods have also been adjusted upwards, with the revenue forecast for fiscal year 2024 now standing at $1.67 billion.
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