Jefferies Reiterates a Buy Rating on Almost Family Inc

By Austin Angelo

Jefferies analyst Brian Tanquilut reiterated a Buy rating on Almost Family Inc (NASDAQ: AFAM) today and set a price target of $58. The company’s shares closed yesterday at $40.75.

Tanquilut said:

“We remain very positive on AFAM given our view that the stock’s current valuation grossly undervalues the company’s growth outlook and likely EPS upside surprises, driven by the broader rise in demand for home nursing services, recently-announced acquisitions (including the CYH JV), and incremental capital deployment toward accretive acquisitions. AFAM’s strong Q3 underscores underrated fundamental strength of the business and improvements with previous challenges in FL. Our bullish view on AFAM is driven by our belief that it is well positioned to deliver strong growth and positive earnings surprises, and its Q3 results (EPS of $0.66, 3% beat; EBITDA margin +70 bps Y/ Y to 8.6%, home nursing Medicare SS admissions of +2.5%) underscore this thesis. AFAM is re-establishing a track record of consistent organic revenue growth that is benefiting from broad-based demand acceleration for home nursing services, coupled with company- specific efforts, including moves by mgmt. aimed at addressing operational/market share issues in its Florida operations that began in 3Q15.”

According to TipRanks.com, Tanquilut is ranked 0 out of 5 stars with an average return of -10.0% and a 33.1% success rate. Tanquilut covers the Healthcare sector, focusing on stocks such as Five Star Quality Care, Quest Diagnostics Inc., and U.S. Physical Therapy.

Almost Family Inc has an analyst consensus of Moderate Buy, with a price target consensus of $55.

The company has a one year high of $45.17 and a one year low of $34.08. Currently, Almost Family Inc has an average volume of 67.47K.

Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is negative on the stock. Most recently, in July 2016, North Tide Capital, Llc, a Major Shareholder at AFAM sold 36,200 shares for a total of $1,462,925.

Almost Family, Inc. provides home health nursing, rehabilitation and personal care services. The company operates its business through two segments: Visiting Nurse and Personal Care. The Visiting Nurse segment provides a comprehensive range of medicare-certified home health nursing services to patients in need of recuperative care, for a period of hospitalization or care in another type of inpatient facility. The Personal Care segment provides in patients homes and personal care services, such as medication management, meal preparation, caregiver respite and homemaking. The company serves Medicare, Medicaid and private insurance companies. Almost Family was founded in 1976 and is headquartered in Louisville, KY.