Oppenheimer analyst Michael Wiederhorn maintained a Buy rating on Chemed (NYSE: CHE) today and set a price target of $340. The company’s shares closed yesterday at $278.75.
Wiederhorn observed:
“CHE reported 3Q:18 adj. EPS of $3.07 (GAAP: $3.06), handily topping OPCO/Street ests. of $2.78/$2.80. Adj. results exclude the normal items (OIG/stock options/stock comp/etc.). The beat vs. our model was driven by Vitas, which generated adj. EBITDA of $48.9M (+$3M vs. our estimate) due to a combination of stronger revenues and margins than we were projecting. CF was also robust at $110M. Driven by a slight improvement to Vitas estimates, Chemed raised its FY2018 EPS guidance to $11.80- $11.90 from $11.35-11.55. This implies Q4:18 adj. EPS of $3.22-$3.32, ahead of OPCO/Street prior of $3.19/$3.15E. Following the quarter, we are increasing our FY2018/2019 EPS estimates to $11.85/$12.51 from $11.48/$12.41.”
According to TipRanks.com, Wiederhorn is a top 100 analyst with an average return of 15.1% and a 70.1% success rate. Wiederhorn covers the Services sector, focusing on stocks such as Cross Country Healthcare, Addus Homecare Corp, and Community Health.
Currently, the analyst consensus on Chemed is a Moderate Buy with an average price target of $365.
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Chemed’s market cap is currently $4.46B and has a P/E ratio of 24.65. The company has a Price to Book ratio of 8.02.
Based on the recent corporate insider activity of 67 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.
