Bank of America Downgrades Option Care Health Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 01 2026
0mins
Should l Buy OPCH?
Source: seekingalpha
- Rating Downgrade Impact: Bank of America downgraded Option Care Health (OPCH) from Buy to Neutral, primarily due to its lowered full-year revenue outlook, resulting in continued stock price decline post-earnings, reflecting market concerns about the company's future growth.
- Revenue Forecast Adjustment: Analyst Joanna Gajuk projected that OPCH will face pressures from payor therapy authorizations and competition from pharmacy benefit manager-owned pharmacies, particularly related to Johnson & Johnson's (JNJ) Stelara, leading to reduced revenue and EBITDA estimates.
- Significant Price Target Cut: Gajuk nearly halved OPCH's price target from $40 to $22, indicating a lack of confidence in the company's ability to return to prior long-term targets, with expectations that the stock will remain range-bound without upward momentum.
- Cautious Future Outlook: Although Option Care Health forecasts 2026 revenue between $5.675 billion and $5.775 billion, with EBITDA between $480 million and $505 million, analysts believe the stock will struggle to break current limits until more proof points emerge regarding its recovery potential.
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Analyst Views on OPCH
Wall Street analysts forecast OPCH stock price to rise
10 Analyst Rating
9 Buy
1 Hold
0 Sell
Strong Buy
Current: 20.510
Low
27.00
Averages
36.22
High
40.00
Current: 20.510
Low
27.00
Averages
36.22
High
40.00
About OPCH
Option Care Health, Inc. is an independent provider of home and alternate site infusion services. The Company’s infusion services include the clinical management of infusion therapy, nursing support and care coordination. It provides a therapy portfolio through its network of 92 full-service pharmacies and 93 stand-alone ambulatory infusion suites. It administers a wide variety of therapies and services, including anti-infectives infusion, nutrition support, immunoglobulin infusion, chronic inflammatory disorders, neurological disorders, bleeding disorders infusion, Naven health, women’s health, heart failure, and others. Its home infusion services include medication and supplies for administration and use at home or within one of its ambulatory infusion suites, consultation and education regarding the patient’s condition and the prescribed medication nursing support, clinical monitoring and assistance in monitoring potential side effects, and assistance in obtaining reimbursement.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Van Berkom Acquires Stake in Option Care Health
- New Investment Position: Van Berkom & Associates Inc. disclosed a new position in Option Care Health on May 7, 2026, acquiring 1,587,636 shares valued at approximately $51.54 million, indicating a long-term confidence in the company despite recent challenges.
- Ownership Proportion: This acquisition represents 1.41% of the fund's reportable assets under management as of March 31, 2026, highlighting Van Berkom's commitment to Option Care amidst performance pressures faced by the company.
- Market Performance Volatility: As of May 6, 2026, Option Care Health's shares closed at $20.45, down 37.5% year-over-year, and plummeted 24% following the first-quarter earnings report, reflecting market concerns regarding its growth outlook.
- Financial Overview: Despite a modest 1.3% year-over-year revenue increase to $1.35 billion in Q1 and a 6.3% decline in adjusted EBITDA to $104.8 million, the company expanded its credit facility and repurchased $17.5 million in stock, demonstrating resilience in challenging conditions.
See More
Option Care Health Under Investigation for Securities Compliance
- Disappointing Earnings Report: On April 30, 2026, Option Care Health reported first-quarter results that fell short of analysts' expectations, resulting in a stock price drop that reflects market concerns about the company's future performance.
- Lowered Full-Year Outlook: The company revised its full-year revenue outlook downward, a decision that could further undermine investor confidence and raise doubts about the company's future profitability among shareholders.
- Legal Investigation Initiated: Holzer & Holzer, LLC is investigating whether Option Care Health complied with federal securities laws, indicating potential legal risks for the company and increasing the likelihood of investor losses.
- Investor Rights Advocacy: Holzer & Holzer is urging affected investors to contact attorneys for legal support, which may trigger a broader trust crisis among shareholders regarding the company's management.
See More
Option Care Health Under Investigation for Securities Violations
- Investigation Launched: The Schall Law Firm has announced an investigation into Option Care Health, Inc. to determine if the company issued false or misleading statements or failed to disclose important information to investors, which could impact the company's reputation and shareholder confidence.
- Financial Performance Decline: Option Care's Q1 financial results released on April 30, 2026, revealed a 3.75% downward revision of its FY 2026 guidance, indicating poor performance in patient retention and therapy mix, which may raise investor concerns about future earnings.
- Stock Price Volatility: Following this news, Option Care's shares opened down 26.4% on the same day, reflecting market pessimism regarding the company's outlook and potentially triggering further legal actions from investors.
- Investor Rights Protection: The Schall Law Firm encourages affected shareholders to participate in the investigation and offers free legal consultations, demonstrating a commitment to protecting investor rights and potentially attracting more shareholders to engage in legal actions.
See More
Option Care Health Cuts 2026 Revenue Guidance, Shares Plunge
- Guidance Revision: On April 30, 2026, Option Care Health revised its 2026 revenue guidance down to $5.675 billion to $5.775 billion, a reduction of up to 3.75% from the previous range of $5.8 billion to $6 billion announced just 65 days earlier, indicating a pessimistic outlook on market demand.
- Stock Plunge: Following the guidance cut, OPCH shares opened down approximately 26.4% on April 30, 2026, with midday losses reaching 30%, reflecting strong investor disappointment regarding the company's future prospects.
- Poor Financial Performance: The Q1 results revealed that the new guidance represents only 1% growth compared to the previous year, with CFO Sethna attributing the downward revision to lower expectations for CID patient retention and therapy mix, further exacerbating market unease.
- Legal Investigation Initiated: Due to the significant adjustment in financial outlook, Levi & Korsinsky law firm has launched an investigation into Option Care Health, encouraging affected investors to submit their information to explore their legal rights, highlighting concerns over the company's transparency.
See More
Option Care Health Misses Q1 Revenue Expectations
- Weak Revenue Growth: Option Care Health's Q1 revenue grew only 1.3% year-on-year to $1.35 billion, falling short of the $1.40 billion analyst expectations, indicating pressure in market competitiveness.
- Profitability Performance: Although the adjusted EPS of $0.40 exceeded the analyst forecast of $0.37 by 8.1%, the overall performance was constrained by slower-than-expected revenue growth, impacting investor confidence.
- Guidance Downgrade: The company lowered its full-year revenue guidance to $5.73 billion from $5.9 billion, a 3% decrease, reflecting management's cautious outlook on future market conditions, which may affect long-term shareholder returns.
- Strategic Investments and Challenges: Management emphasized increasing investments in the commercial team to address the decline in chronic therapy patient volumes while optimizing cost structures to maintain profitability, demonstrating the company's determination to seek growth amid adversity.
See More
Bank of America Downgrades Option Care Health Rating
- Rating Downgrade Impact: Bank of America downgraded Option Care Health (OPCH) from Buy to Neutral, primarily due to its lowered full-year revenue outlook, resulting in continued stock price decline post-earnings, reflecting market concerns about the company's future growth.
- Revenue Forecast Adjustment: Analyst Joanna Gajuk projected that OPCH will face pressures from payor therapy authorizations and competition from pharmacy benefit manager-owned pharmacies, particularly related to Johnson & Johnson's (JNJ) Stelara, leading to reduced revenue and EBITDA estimates.
- Significant Price Target Cut: Gajuk nearly halved OPCH's price target from $40 to $22, indicating a lack of confidence in the company's ability to return to prior long-term targets, with expectations that the stock will remain range-bound without upward momentum.
- Cautious Future Outlook: Although Option Care Health forecasts 2026 revenue between $5.675 billion and $5.775 billion, with EBITDA between $480 million and $505 million, analysts believe the stock will struggle to break current limits until more proof points emerge regarding its recovery potential.
See More
Van Berkom Acquires Stake in Option Care Health
- New Investment Position: Van Berkom & Associates Inc. disclosed a new position in Option Care Health on May 7, 2026, acquiring 1,587,636 shares valued at approximately $51.54 million, indicating a long-term confidence in the company despite recent challenges.
- Ownership Proportion: This acquisition represents 1.41% of the fund's reportable assets under management as of March 31, 2026, highlighting Van Berkom's commitment to Option Care amidst performance pressures faced by the company.
- Market Performance Volatility: As of May 6, 2026, Option Care Health's shares closed at $20.45, down 37.5% year-over-year, and plummeted 24% following the first-quarter earnings report, reflecting market concerns regarding its growth outlook.
- Financial Overview: Despite a modest 1.3% year-over-year revenue increase to $1.35 billion in Q1 and a 6.3% decline in adjusted EBITDA to $104.8 million, the company expanded its credit facility and repurchased $17.5 million in stock, demonstrating resilience in challenging conditions.
See More
Option Care Health Under Investigation for Securities Compliance
- Disappointing Earnings Report: On April 30, 2026, Option Care Health reported first-quarter results that fell short of analysts' expectations, resulting in a stock price drop that reflects market concerns about the company's future performance.
- Lowered Full-Year Outlook: The company revised its full-year revenue outlook downward, a decision that could further undermine investor confidence and raise doubts about the company's future profitability among shareholders.
- Legal Investigation Initiated: Holzer & Holzer, LLC is investigating whether Option Care Health complied with federal securities laws, indicating potential legal risks for the company and increasing the likelihood of investor losses.
- Investor Rights Advocacy: Holzer & Holzer is urging affected investors to contact attorneys for legal support, which may trigger a broader trust crisis among shareholders regarding the company's management.
See More
Option Care Health Under Investigation for Securities Violations
- Investigation Launched: The Schall Law Firm has announced an investigation into Option Care Health, Inc. to determine if the company issued false or misleading statements or failed to disclose important information to investors, which could impact the company's reputation and shareholder confidence.
- Financial Performance Decline: Option Care's Q1 financial results released on April 30, 2026, revealed a 3.75% downward revision of its FY 2026 guidance, indicating poor performance in patient retention and therapy mix, which may raise investor concerns about future earnings.
- Stock Price Volatility: Following this news, Option Care's shares opened down 26.4% on the same day, reflecting market pessimism regarding the company's outlook and potentially triggering further legal actions from investors.
- Investor Rights Protection: The Schall Law Firm encourages affected shareholders to participate in the investigation and offers free legal consultations, demonstrating a commitment to protecting investor rights and potentially attracting more shareholders to engage in legal actions.
See More
Option Care Health Cuts 2026 Revenue Guidance, Shares Plunge
- Guidance Revision: On April 30, 2026, Option Care Health revised its 2026 revenue guidance down to $5.675 billion to $5.775 billion, a reduction of up to 3.75% from the previous range of $5.8 billion to $6 billion announced just 65 days earlier, indicating a pessimistic outlook on market demand.
- Stock Plunge: Following the guidance cut, OPCH shares opened down approximately 26.4% on April 30, 2026, with midday losses reaching 30%, reflecting strong investor disappointment regarding the company's future prospects.
- Poor Financial Performance: The Q1 results revealed that the new guidance represents only 1% growth compared to the previous year, with CFO Sethna attributing the downward revision to lower expectations for CID patient retention and therapy mix, further exacerbating market unease.
- Legal Investigation Initiated: Due to the significant adjustment in financial outlook, Levi & Korsinsky law firm has launched an investigation into Option Care Health, encouraging affected investors to submit their information to explore their legal rights, highlighting concerns over the company's transparency.
See More
Option Care Health Misses Q1 Revenue Expectations
- Weak Revenue Growth: Option Care Health's Q1 revenue grew only 1.3% year-on-year to $1.35 billion, falling short of the $1.40 billion analyst expectations, indicating pressure in market competitiveness.
- Profitability Performance: Although the adjusted EPS of $0.40 exceeded the analyst forecast of $0.37 by 8.1%, the overall performance was constrained by slower-than-expected revenue growth, impacting investor confidence.
- Guidance Downgrade: The company lowered its full-year revenue guidance to $5.73 billion from $5.9 billion, a 3% decrease, reflecting management's cautious outlook on future market conditions, which may affect long-term shareholder returns.
- Strategic Investments and Challenges: Management emphasized increasing investments in the commercial team to address the decline in chronic therapy patient volumes while optimizing cost structures to maintain profitability, demonstrating the company's determination to seek growth amid adversity.
See More
Bank of America Downgrades Option Care Health Rating
- Rating Downgrade Impact: Bank of America downgraded Option Care Health (OPCH) from Buy to Neutral, primarily due to its lowered full-year revenue outlook, resulting in continued stock price decline post-earnings, reflecting market concerns about the company's future growth.
- Revenue Forecast Adjustment: Analyst Joanna Gajuk projected that OPCH will face pressures from payor therapy authorizations and competition from pharmacy benefit manager-owned pharmacies, particularly related to Johnson & Johnson's (JNJ) Stelara, leading to reduced revenue and EBITDA estimates.
- Significant Price Target Cut: Gajuk nearly halved OPCH's price target from $40 to $22, indicating a lack of confidence in the company's ability to return to prior long-term targets, with expectations that the stock will remain range-bound without upward momentum.
- Cautious Future Outlook: Although Option Care Health forecasts 2026 revenue between $5.675 billion and $5.775 billion, with EBITDA between $480 million and $505 million, analysts believe the stock will struggle to break current limits until more proof points emerge regarding its recovery potential.
See More
