In a report released yesterday, Mohan Naidu from Oppenheimer maintained a Buy rating on Tivity Health Inc (NASDAQ: TVTY), with a price target of $44. The company’s shares closed yesterday at $33.90.
Naidu noted:
“TivityHealth reported in-line-with-consensus revenues/EPS at $152M/$0.53 but EPS was ahead of our estimate by $0.03. Visits were up 11% y/y and recovered from Q1 weakness. AARP partnership for the Flip50 program provides additional growth legs. But the news of additional churn in UNH business is likely to cause investor worry. Mgmt. noted that UNH will insource individual members in 11 additional states, causing a $19-$21M revenue headwind in CY19. While mgmt. is optimistic about the UNH relationship, in our opinion, we should start to look at TVTY without the UNH business beyond the current contract period. News of additional UNH attrition poses headline and numbers risk, but we believe the core business, ex-UNH, is equally attractive. Remain Outperform, adjusting target to $44.”
According to TipRanks.com, Naidu is a 5-star analyst with an average return of 12.6% and a 60.3% success rate. Naidu covers the Services sector, focusing on stocks such as Hms Holdings Corp, Express Scripts, and Evolent Health.
Tivity Health Inc has an analyst consensus of Strong Buy, with a price target consensus of $45.50, representing a 34.2% upside. In a report released yesterday, Cantor Fitzgerald also maintained a Buy rating on the stock with a $49 price target.
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Tivity Health Inc’s market cap is currently $1.35B and has a P/E ratio of 22.65. The company has a Price to Book ratio of 4.59.
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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.
