Amedisys: No Change To Thesis, Retain Hold

Nov. 23, 2022 4:36 AM ETAmedisys, Inc. (AMED)
Zach Bristow profile picture
Zach Bristow
2.47K Followers

Summary

  • Company CEO departed last week, although management reaffirmed FY22 guidance.
  • Speaking of guidance, growth at the top–bottom lines was narrowed down on the Q3 earnings call.
  • NOPAT conversion and ROIC continues to tighten as capital intensity simultaneously increases.
  • We see no change to our thesis and reaffirm the hold rating with a $87 price target.

Doctors assisting patients at the hospital

andresr

Investment Summary

After extensive review of the investment case, our informed appraisal of Amedysis, Inc. (NASDAQ:AMED) equity is unchanged at neutral. As a starting point, recall that our hold thesis for AMED is built on these main factors:

  1. Operating
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Data: Updata

44

Data: HB Insights, AMED SEC Filings

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Data & Image: AMED Q3 FY22 earnings call presentation, pp. 15 "Amedisys 2022 Updated Guidance: Revenue, EBITDA and EPS"

44

Data: HB Insights Estimates

This article was written by

Zach Bristow profile picture
2.47K Followers
Buy side equity portfolio strategist serving mandates throughout EU/US/APAC. Helping you position your portfolios for the future is my top priority. Shoot me a message to discuss trade ides or talk portfolio construction. Disclaimer:The opinions expressed in all articles do not constitute as investment advice. Please remember to conduct your own due diligence.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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