OPCH Stock Forecast & Price Target

Option Care Health Inc has demonstrated positive momentum with a slight increase in revenue and adjusted EBITDA guidance for 2025, attributed in part to the recent acquisition of Intramed Plus. The company has shown significant expansion in its operational capabilities, with over 700 chairs across 175 ambulatory infusion sites, resulting in greater nursing interaction utilization, which is expected to enhance margins over time. The acute therapy revenue growth in the high-single digits indicates that Option Care is effectively capturing market share amidst a competitive landscape, further bolstering its positive financial outlook.

Option Care Health Inc. has faced a consistent decline in key financial metrics since its return to public status, indicating potential underlying weaknesses in its operational efficiency. The company's guidance includes anticipated gross profit headwinds of $60-70 million linked to pricing adjustments for Stelara, which could significantly impact future profitability. Furthermore, an increase in SG&A expenses to 12.2% of revenue, exceeding prior expectations, raises concerns about the company's cost management and operational leverage moving forward.