Chemed's updated fair value estimate has shifted from US$571.60 to US$592.60, a change of about 3.7% in the latest analyst work. That move sits against a mixed research backdrop, with stronger Vitas expectations, a more cautious read on Roto, and differing views on how far price targets like US$555 and US$620 should influence current positioning. Read on to see how this evolving narrative may shape the way you track Chemed from here.
Stay updated as the Fair Value for Chemed shifts by adding it to your watchlist or portfolio . Alternatively, explore our Community to discover new perspectives on Chemed.
What Wall Street Has Been Saying
🐂 Bullish Takeaways
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Several firms, including UBS, Oppenheimer and Jefferies, have lifted Chemed price targets. This points to a more constructive view on the company's valuation following recent quarterly results.
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RBC Capital highlights Q3 EBITDA and EPS that were ahead of consensus, with both VITAS and Roto-Rooter revenue contributing. This supports confidence in Chemed execution.
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Oppenheimer and Jefferies both point to the VITAS hospice segment as a key earnings driver, with Jefferies citing improving margins and describing the Roto-Rooter unit as stabilized.
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The Jefferies upgrade to Buy, along with its higher US$620 price target, indicates a more positive stance on Chemed earnings outlook and the potential for the stock to re-rate over time.
🐻 Bearish Takeaways
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BofA keeps a Neutral rating and flags ongoing pressure in the Roto-Rooter segment, which it says continues to miss even as VITAS supports results.
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RBC Capital maintains a Sector Perform rating, which shows that some analysts still see a balanced risk and reward profile for Chemed despite recent beats and target increases.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives!
We've flagged 1 risk for Chemed. See which could impact your investment.
How This Changes the Fair Value For Chemed
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Fair value has moved from US$571.60 to US$592.60, a change of about 3.7%.
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Revenue growth in the model has shifted from 6.97% to about 7.37%.
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Net profit margin has adjusted from about 12.63% to about 12.57%.
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Future P/E has moved from 18.4x to about 19.0x.
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The discount rate is effectively unchanged at 7.236%.
Never Miss an Update: Follow The Narrative
Narratives connect Chemed's business story to the financial assumptions behind its fair value and earnings forecasts. They automatically refresh as new company news, guidance and analyst data come through.
Head over to the Simply Wall St Community and follow the Narrative on Chemed to stay up to date on:
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How VITAS is expanding into new Florida Certificate of Need markets, with the aim of capturing hospice under penetration and serving an aging population.
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What Chemed is doing around Medicare Cap management, patient mix and operational efficiency to support margins at VITAS and Roto Rooter.
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Key risks such as reimbursement rule changes and higher customer acquisition costs at Roto Rooter that could pressure earnings if not contained.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include CHE .
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