Analyst Ratings January 23, 2026

BMO Capital Boosts BrightSpring Health Price Target Amid Strong Specialty Segment Growth

Analysts highlight robust revenue gains and key oncology partnerships driving investor optimism

By Maya Rios BTSG
BMO Capital Boosts BrightSpring Health Price Target Amid Strong Specialty Segment Growth
BTSG

BMO Capital has lifted its price target for BrightSpring Health to $46 from $40 while retaining an Outperform rating, citing accelerated expansion in its specialty business and impressive recent financial performance. The stock has experienced substantial gains since its IPO, supported by a strong competitive position in pharmaceutical distribution and favorable analyst revisions reflecting confidence in continued growth.

Key Points

  • BMO Capital raised BrightSpring Health's price target to $46, maintaining an Outperform rating amid rapid specialty business growth.
  • BrightSpring’s stock has soared more than 200% since its 2024 IPO, propelled by major oncology pharmacy distribution deals and growing revenues.
  • Multiple analysts have increased price targets and upgraded ratings following strong Q3 2025 earnings that beat consensus estimates.

BMO Capital Markets increased its price projection for BrightSpring Health, Inc. (NASDAQ: BTSG) to $46.00 from a prior $40.00, affirming an Outperform rating on the shares. This recently adjusted target lies comfortably within the existing analyst range of $38 to $50, with BrightSpring shares currently valued around $39.60, as reported by market analytics from InvestingPro.

The investment research entity pointed to a swift acceleration in the company’s specialty healthcare segment, which has realized a compound annual growth rate surpassing 35% since 2024. This pace aligns with the firm’s expansive total revenue growth, which reached 37.13% over the trailing twelve months and averages 20% on a five-year compounded basis.

Crucial to BrightSpring’s market performance is its success in obtaining pivotal distribution agreements within its Oncology pharmacy division. This development has been identified by BMO Capital as a chief driver behind the stock's strong upward trajectory. Concurrently, data shows that nine analysts have recently issued upward revisions to earnings projections for BrightSpring’s forthcoming fiscal quarters, further signaling market confidence in its growth potential.

BrightSpring Health’s shares have surged 120% in the current calendar year of 2025 and have appreciated by 205% since their initial public offering in January 2024. This growth rate positions the stock as the top performer within BMO Capital’s coverage spectrum over the year to date. Additional data from InvestingPro notes that the company has delivered an 85.92% price return over the last six months and an 83.76% return over the past twelve months, with the stock hovering near its 52-week peak of $41.03.

The firm's analytical commentary highlighted BrightSpring’s robust relationships within the pharmaceutical sector and its advantaged market stance, reinforcing confidence in the sustainability of its specialty business’s rapid expansion. Even though the stock currently trades at a relatively elevated price-to-earnings ratio of 63.45, the price/earnings-to-growth (PEG) ratio stands at a notably low 0.21, suggesting valuation remains favorable in light of anticipated near-term earnings growth.

Furthermore, BrightSpring holds a "GREAT" financial health rating of 3.4 on InvestingPro's scale, reflecting solid fundamentals amid an extensive analysis of over 1,400 US equities offered in their Pro Research Reports.

Additional recent earnings disclosures have bolstered BrightSpring’s standing among investors. The company’s Q3 2025 results surpassed analyst expectations, reporting earnings per share (EPS) of $0.30 against forecasts of $0.22 and generating $3.3 billion in revenue — a 28% increase compared to the prior year period. Adjusted EBITDA also grew robustly by 37% year-over-year to $160.4 million.

Following these results, BTIG adjusted BrightSpring’s price target upward to $41.00 from $30.00 while maintaining a Buy rating. KeyBanc elevated the stock from Sector Weight to Overweight, setting a target of $45.00, referencing the company’s competitive positioning in the Specialty Pharmacy domain. Stephens initiated coverage with an Overweight rating and a price target of $44.00, underscoring noteworthy post-IPO growth momentum.

These recent analyst activities convey a broadly positive outlook regarding BrightSpring Health’s financial trajectory and strong positioning within the healthcare services market.

Risks

  • Elevated price-to-earnings ratio suggests high market expectations; any future earnings disappointments could affect stock performance.
  • Reliance on specialty pharmaceutical distribution agreements exposes BrightSpring to potential regulatory or competitive threats impacting market share.
  • Strong growth momentum may face challenges sustaining the rapid pace, as indicated by a highly valued stock relative to earnings.

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