AMED - Amedisys extends gains as BMO Capital Markets upgrades on valuation and outlook
Amedisys (AMED +5.5%) has stretched its post-earnings gains further on Friday after BMO Capital Markets upgraded the healthcare services firm on the strength of its 2022 outlook and compelling valuation. Baton Rouge, Louisiana-based Amedisys (NASDAQ:AMED) reported better-than-anticipated Q4 2021 revenue on Wednesday while its earnings met the market forecasts. However, its 2022 outlook for $5.23 – $5.45 earnings per share fell short of the consensus at $5.84. According to BMO analyst Matthew Borsch, Amedisys’ (AMED) results indicated a “reasonably good 4Q finish to a year of tough headwinds.” The initial 2022 guidance was “modestly” below Wall Street forecasts. However, with room for further upside, it can perform “as a bridge to stronger results in 2023 and beyond,” the analyst added. With the stock having lost nearly 50% lower over the past twelve months primarily due to multiple contraction, the valuation seemed attractive in terms of growth potential, Borsch argued, noting
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Amedisys extends gains as BMO Capital Markets upgrades on valuation and outlook