Chemed (CHE) Receives a Rating Update from a Top Analyst

Oppenheimer analyst Michael Wiederhorn maintained a Buy rating on Chemed (CHE) today and set a price target of $340. The company’s shares closed yesterday at $316.49.

Wiederhorn noted:

“CHE reported 4Q:18 adj. EPS of $3.35 (GAAP: $3.26), topping OPCO/Street estimates of $3.27/$3.26. Adj. results exclude the normal items (OIG/stock options/ stock comp/etc.). The beat vs. our model was boosted by a low tax rate. Segment EBITDA did top our estimates for each segment, with Roto-Rooter (+$2.3M) driving more outperformance than Vitas (+$0.5M). Following the quarter, Chemed issued FY2019 EPS guidance of $12.65-$12.85 vs. Roto-Rooter (revenue growth +9-10%) driving the upside vs. our estimates (see exhibit). As a result, we are increasing our FY2019/2020 EPS estimates to $12.77/ $13.59 from $12.51/$13.36 and maintaining our $340 price target.”

According to, Wiederhorn is a top 100 analyst with an average return of 15.6% and a 69.7% success rate. Wiederhorn covers the Services sector, focusing on stocks such as Community Health, The Ensign Group, and Centene Corp.

Currently, the analyst consensus on Chemed is a Moderate Buy with an average price target of $340.

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Based on Chemed’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $51.25 million. In comparison, last year the company had a net profit of $54.55 million.

Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is negative on the stock.

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Chemed Corp. engages in the provision of healthcare and maintenance services. It operates through the VITAS and Roto-Rooter segments. The VITAS segment offers hospice and palliative care services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers.