RBC Capital reiterated an Outperform rating for Addus HomeCare and preserved a $139 price target on the stock. The shares are trading at $105.15, down from a prior close of $117.63, while InvestingPro data lists a Fair Value estimate of $129.18, indicating the company may be trading below intrinsic valuation metrics.
The firm characterized Tuesday’s pullback in the stock as unwarranted, pointing to ongoing strength in personal care demand and what it described as rate momentum across Addus’ primary markets. RBC said that sustained rate movement should lessen market concern about the company’s personal care operations and reinforce its value proposition to state programs.
At the same time, RBC acknowledged investor apprehension around Medicaid policy and the possibility of state budget pressure following the OBBBA. The firm concluded that the recent decline in the share price provides a compelling entry point for prospective investors.
Supporting RBC’s stance, InvestingPro Tips show that five analysts have raised their earnings estimates for the upcoming period, and the company posted 23% revenue growth. Addus also appears on InvestingPro’s Most Undervalued list, with analyst price targets spanning a range from $112 to $160.
Separately, Addus reported fourth-quarter 2025 results that topped consensus forecasts on both the earnings and revenue lines. The company delivered adjusted earnings per share of $1.77 versus the forecasted $1.72, and reported revenue of $373.1 million compared with a projection of $372.87 million.
Individual analyst actions following the results were mixed but generally favorable. KeyBanc kept an Overweight rating on Addus, citing a 3% EBITDA beat that it attributed to robust same-store revenue growth in the Personal Care segment. Stephens trimmed its price target from $140 to $135 after noting a 1.1% year-over-year decline in segment billable census during the fourth quarter, but it retained an Overweight rating. Citizens reiterated a Market Outperform rating with a $150 price target and left its 2026-2027 EBITDA estimates unchanged.
These developments reflect a combination of strong recent operating performance and cautious forward-looking views from some analysts. RBC’s emphasis on rate momentum and the notion that the pullback presents an attractive entry point contrasts with lingering concerns tied to Medicaid policy and potential state budget constraints tied to the OBBBA.
Investors weighing Addus should consider the mix of positive earnings surprises, analyst target dispersion, and policy-related uncertainties that remain in the market narrative for the stock.