UBS upgrades Aveanna Healthcare to Neutral, raises PT to $8 from $6.75.

UBS upgrades Aveanna Healthcare to Neutral, raises PT to $8 from $6.75.

July 02, 2025 - UBS has upgraded Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) to Neutral from Sell, raising its price target to $8 from $6.75. This move comes after a series of positive developments in the company's financial performance and operational outlook.

UBS cited several factors in its upgrade decision. The investment bank highlighted Aveanna's improved financial health, as evidenced by its second-quarter earnings report, which addressed previous policy-driven concerns and demonstrated positive differentiation within the Medicaid landscape. Additionally, UBS noted the company's significant upward revision in its 2026 EBITDA estimate by $55 million, representing a 26% increase from its previous projection [1].

The upgrade follows a string of positive analyst reports. Earlier this month, Barclays upgraded Aveanna's stock from Equalweight to Overweight, raising its price target to $9.50 from $5.50 [1]. Raymond James also upgraded Aveanna's stock from Market Perform to Outperform, setting a price target of $9.00. Meanwhile, Metro Bank Plc received an upgrade from RBC Capital, moving from Sector Perform to Outperform [1].

UBS's new price target reflects a growing confidence in Aveanna's ability to generate free cash flow and improve its financial position. The company has demonstrated strong momentum, with a 54% year-to-date return and a market capitalization of $1.46 billion. As of the close of trading on July 02, 2025, Aveanna's stock was trading at $7.04.

References:
[1] https://www.investing.com/news/analyst-ratings/barclays-upgrades-aveanna-healthcare-stock-to-overweight-on-improved-outlook-93CH-4199126