AVAH Should I Buy

RBC Capital upgraded Aveanna to Outperform from Sector Perform with an unchanged price target of $10. The firm cites the company's "solid execution" on preferred payor relationships for the upgrade. Aveanna also expanded its private duty nursing platform scale and density with the Family First acquisition, the analyst tells investors in a research note. RBC says that while policy uncertainty has weighed on the shares, Aveanna's reimbursement concern is overdone, especially as shares approach a "trough valuation." It believes the company's growing market presence and steady improvement in preferred payor mix "creates a natural buffer against Medicaid policy turbulence." RBC recommends buying Aveanna on the recent selloff.