1. Option Care Health, Inc. (NASDAQ:OPCH)
Number of Hedge Fund Holders: 36
One-Year Price Target: $38.17
Illinois-based medical care facilities company Option Care Health, Inc. (NASDAQ:OPCH) provides infusion services. In October, Option Care Health, Inc. (NASDAQ:OPCH) posted its third quarter results. GAAP EPS in the quarter came in at $0.20, meeting estimates. Revenue in the quarter jumped about 14.4% to total $23.72 million. For the full-year 2022, Option Care Health, Inc. (NASDAQ:OPCH) revised its guidance. Option Care Health, Inc. (NASDAQ:OPCH) now expects net revenue for the period to come in between $3.90 billion to $3.95 billion, compared to its prior guidance of $3.85 billion to $3.95 billion. The consensus estimate for this metric is $3.92 billion. Adjusted EBITDA for the period is expected to come between $336 million to $341 million
A total of 36 hedge funds tracked by Insider Monkey reported having stakes in Option Care Health, Inc. (NASDAQ:OPCH) at the end of the third quarter of 2022. The total value of these stakes at the end of the quarter was $627 million.
Baron Funds made the following comment about Option Care Health, Inc. (NASDAQ:OPCH) in its Q4 2022 investor letter:
“We initiated a position in Option Care Health, Inc. (NASDAQ:OPCH), the largest independent player in the $15 billion U.S. home and alternate site infusion market. We believe Option Care is well positioned to capitalize on the ongoing shift to lower-cost sites of care and the proliferation of new specialty drug treatments. Home infusions cost 40% to 70% less than infusions at a hospital. Option Care’s footprint, with over 150 locations, allows it to serve roughly 96% of the U.S. population in a market growing 5% to 7% a year. The company has a well-diversified portfolio of therapies and provider relationships with no customer concentration, enjoys in-network status with all larger payors, and has low direct government reimbursement risk as Medicare currently does not cover home infusion. We estimate the market would double if this were to occur in the future. Given its geographic coverage and therapeutic expertise, the company is assured a seat at the table to discuss new innovative episodic or fully capitated models with payors. It also has strong relationships with relevant drug manufacturers, facilitating early access to newly approved drugs and preferred supply arrangements, while its size and scale provide purchasing power. Management believes the company can continue to generate high single-digit organic revenue growth and mid-teens EBITDA growth. There is also an opportunity to enhance growth through M&A. The company has an excellent track record of acquiring and integrating acquisitions and, with 45% of its market still made up of regional and local providers, there is a meaningful consolidation opportunity.”
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