US Physical Therapy Positioned For Success Despite Medicare Challenges, Analyst Optimistic On Unique Growth Strategy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 17 2024
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Source: Benzinga
JMP Securities Coverage Initiation: JMP Securities has initiated coverage on U.S. Physical Therapy, Inc. (USPH) with a Market Outperform rating and a price target of $113, citing the company's strong revenue growth potential due to its unique partnership model and focus on workplace injury prevention.
Market Challenges and Opportunities: Despite challenges such as rising labor costs and Medicare reimbursement cuts, JMP remains optimistic about USPH's growth prospects through strategic acquisitions and potential improvements in Medicare rates post-2025, within a competitive $40 billion rehabilitation market.
Analyst Views on USPH
Wall Street analysts forecast USPH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for USPH is 106.50 USD with a low forecast of 103.00 USD and a high forecast of 110.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 87.700
Low
103.00
Averages
106.50
High
110.00
Current: 87.700
Low
103.00
Averages
106.50
High
110.00
About USPH
U.S. Physical Therapy, Inc. is an operator of outpatient physical therapy clinics and provider of industrial injury prevention services. The Company owns and/or manages over 780 outpatient physical therapy clinics in approximately 44 states. It operates through the Physical Therapy Operations and Industrial Injury Prevention Services segments. The Physical Therapy Operations segment consists of physical therapy and occupational therapy clinics that provide pre and post operative care and treatment for orthopedic-related disorders, sports-related injuries, preventive care, rehabilitation of injured workers and neurological injuries. The Industrial Injury Prevention Services segment includes onsite services for clients’ employees, including injury prevention and rehabilitation, performance optimization, post-offer employment testing, functional capacity evaluations, and ergonomic assessments. The majority of these services are contracted with and paid for directly by employers.
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.
