UBS has lowered its 12-month price target for Accendra Health Inc. (ACH) to $3.00 from $4.00, while preserving a Neutral rating on the stock. The analyst adjustment follows the company’s fourth-quarter results and the guidance Accendra published for fiscal 2026.
According to UBS, fourth-quarter EBITDA was generally in line with the firm’s estimates. However, the midpoints of Accendra’s 2026 guidance for both EBITDA and free cash flow were modestly below UBS’s prior expectations, prompting the reduction in the price target.
The shares are trading at $2.61, under the new UBS target. UBS noted, however, that InvestingPro analysis flags a potential undervaluation at current market levels.
Management enters 2026 following the sale of the Products & Healthcare Services (P&HS) segment, and UBS says the company will focus on several operational priorities: shoring up the underlying business, directing investments toward technology, improving collection rates and working to reduce leverage while offsetting the revenue loss from Kaiser.
UBS cautioned that 2026 is likely to be a complicated year, with a number of one-time items - including stranded costs - adding pressure to results. Still, the analyst highlighted areas of relative strength within the business, specifically sleep apnea, urology and ostomy, as positive contributors to the underlying performance.
Despite these positives, UBS retained a Neutral stance, pointing to weak first-half optics primarily caused by the loss of Kaiser and ongoing uncertainty around the company’s capital structure.
An InvestingPro note cited by UBS underscores balance-sheet concerns: Accendra is carrying a heavy debt load and has short-term obligations that exceed its liquid assets, reflected in a current ratio of 0.58. The InvestingPro resource also notes that a full Pro Research Report on ACH is available as part of a wider US-equity research universe.
Recent corporate actions surrounding the former Owens & Minor were also detailed in the company’s announcements. The sale of the P&HS segment to Platinum Equity closed for $375 million in cash, and the company will retain a 5% equity interest in the business it sold. Management also indicated the preservation of tax attributes in excess of $150 million.
As part of the transaction timeline, the company will adopt the Accendra Health, Inc. corporate name by December 31, 2025, and begin trading under the ticker ACH on January 2, 2026.
Credit and leadership developments were also disclosed. Moody’s lowered the company’s Corporate Family Rating from Ba3 to B2, citing the recent segment sale among the factors behind the downgrade. The rating agency adjusted several related ratings, including the Probability of Default Rating and the rating on senior unsecured notes.
On the operational leadership front, Perry A. Bernocchi has been appointed chief operating officer effective immediately; Bernocchi has served since March 2023 as executive vice president and chief executive officer of the Patient Direct segment. The company also announced that Jennifer Stone, executive vice president and chief human resources officer, will depart by December 31, 2025, and her role will be eliminated.
Context for investors
- UBS reduced its price target to $3.00 from $4.00 and kept a Neutral rating after reviewing Q4 results and 2026 guidance.
- Fourth-quarter EBITDA was broadly in line with UBS projections, but midpoint guidance for 2026 EBITDA and free cash flow was slightly below the firm’s estimates.
- Management priorities for 2026 include technology investment, improved collections and deleveraging, alongside efforts to offset the loss of Kaiser.