Citizens reiterated a Market Outperform rating on Addus HomeCare (NASDAQ:ADUS) and kept its $150.00 price target in place, which represents a 32% upside from the prevailing share price of $113.44. According to InvestingPro data cited by the firm, the stock appears undervalued relative to Fair Value estimates.
The analyst team expects Addus to sustain its consistent execution through the fourth quarter and into 2026. Citizens pointed to recent rate lifts in several key personal care states as a catalyst that should push personal care revenue growth above the company’s usual organic growth range in 2026.
The company reported strong top-line momentum, with revenue rising 18.8% over the last twelve months. Citizens said analysts continue to expect the company to remain profitable moving forward.
On leverage and cash flow, Addus reported a net debt to annualized EBITDA ratio of 0.3x. Citizens projects the company can generate roughly $140 million in free cash flow in 2026. That projection is consistent with the firm’s view of Addus’ current financial footing; InvestingPro data shows a moderate debt level, with a Debt/Equity ratio of 0.19, and $96.4 million in levered free cash flow produced over the last twelve months.
Citizens views the company as positioned to continue deploying capital toward accretive acquisitions, noting that the low leverage ratio provides the financial flexibility to pursue growth initiatives.
Analyst action
The reiteration of the Market Outperform rating was issued by Citizens analyst Constantine Davides.
Contextual notes
- Citizens maintained its $150.00 price target on Addus HomeCare.
- The target implies a 32% upside from the current price of $113.44.
- InvestingPro data is cited as indicating the stock is undervalued relative to Fair Value estimates.
Investors and market participants assessing Addus should weigh the company’s recent revenue growth and projected free cash flow against execution in personal care operations and the pace of rate realization in relevant states.