Oppenheimer Keeps a Buy Rating on Tivity Health Inc (TVTY)


In a report released today, Mohan Naidu from Oppenheimer maintained a Buy rating on Tivity Health Inc (TVTY), with a price target of $34. The company’s shares opened today at $33.37.

Naidu wrote:

“NTRI acquisition adds nutrition products and a new revenue stream, but the stock reaction so far represents investors’ disappointment on several fronts. First, the acquisition complicates an otherwise clean story that was focused on senior health and living. Second, increasing debt levels takes out any near-term expectation of capital return. Third, investors are taking the “sell first and ask questions later” approach as the deal takes away near-term upside in favor of long-term potential. Management is betting on health plan and enterprise reimbursement for nutrition following CMS’s lead. Risks and changing complexity are clear, but we believe management’s credibility affords them the opportunity to prove their bet will pay off. Sticking with Outperform rating post sell-off; adjusting PT to $34 from $44.”

According to TipRanks.com, Naidu is a 5-star analyst with an average return of 13.5% and a 59.6% success rate. Naidu covers the Services sector, focusing on stocks such as Hms Holdings Corp, Express Scripts, and Evolent Health.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Tivity Health Inc with a $45.67 average price target, implying a 36.9% upside from current levels. In a report released today, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $49 price target.

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Based on Tivity Health Inc’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $25.36 million. In comparison, last year the company had a net profit of $21.18 million.

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Tivity Health, Inc. engages in the development and provision of network solutions and health management services. It offers rehabilitative therapy, chiropractic procedure, alternative medicines, and health and fitness programs under the SilverSneakers, Prime Fitness, and WholeHealth Living trademarks.

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