In a challenging economic climate, Apollo Medical (TASE:) Holdings, Inc. (ASTH) stock has reached a 52-week low, dipping to $34.1. According to InvestingPro analysis, the stock’s RSI indicates oversold territory, while the company maintains a “GREAT” financial health score of 3.04 out of 5. This latest price level reflects a notable downturn from the company’s performance over the past year, with Apollo Medical experiencing a 1-year change of -7.23%. Despite the decline, the company has demonstrated strong revenue growth of nearly 30% over the last twelve months. InvestingPro analysis suggests the stock is currently undervalued, with analyst targets ranging from $41 to $86. Investors are closely monitoring the stock as it navigates through market volatility and sector-specific headwinds. The current low presents a critical juncture for the company, as market participants consider the potential for recovery or further decline in the coming months. Unlock more insights and 7 additional ProTips with InvestingPro.
In other recent news, Astrana Health has entered into an agreement to acquire Prospect Health for $745 million, a move that will expand its provider network to serve a combined 1.7 million members nationwide. The transaction is expected to close by mid-2025, subject to regulatory approval. The acquisition is to be funded by cash on hand and a $1,095 million bridge loan from Truist Bank and J.P. Morgan. Prospect is projected to generate around $1.2 billion in revenue with an estimated adjusted EBITDA of $81 million for the twelve months ending December 31, 2024.
In the wake of these developments, Astrana Health has received attention from various analysts. TD Cowen initiated coverage on Astrana Health with a Buy rating, anticipating continued growth for the company. KeyBanc has also started its coverage of Astrana Health with a Sector Weight rating, emphasizing the company’s diversified payor contracts and delegated capabilities as key factors in its business model. Additionally, BTIG and Baird have both maintained their Buy ratings for the company, raising their price targets to $70.00 and $67.00, respectively.
Astrana Health has also completed the acquisition of several healthcare entities, including Collaborative Health Systems, Golden Triangle Physician Alliance, and Heritage Physician Networks. This strategic move is set to strengthen Astrana Health’s portfolio and broaden its client base. Moreover, Astrana Health has initiated the resale of Earn-Out Shares linked to its acquisition of Asian American Medical Group (AAMG), providing former AAMG stockholders with the potential to sell shares upon meeting certain performance targets. These are the latest developments in Astrana Health’s business strategy and financial outlook.
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