Bet_Noire
BofA has downgraded Privia Health (NASDAQ:PRVA) to neutral, citing a delay to the upside from value-based care, or VBC.
The investment bank said it was lowering its price objective to $21, which is around where the stock currently trades. It also represents a multiple of 23x BofA’s lower 2025 adjusted EBITDA number, which had been 28x.
“We continue to see support to valuations around these levels from the core physician practice growth, somewhat limiting downside,” wrote the analysts in their note.
“However, without a steeper ramp in VBC earnings, it is difficult to see reacceleration in growth relative to Apollo Medical (AMEH), which we are upgrading to buy, where there are more immediate catalysts for upside,” they added.