TD Cowen has increased its price target for Option Care Health (NASDAQ:OPCH) to $37.00, up from $27.00, while maintaining a Hold rating on the stock. The updated target sits near the company’s recent trading level of $35.90, with shares trading about 0.98% below their 52-week high of $36.80.
The substantial upward revision in the price target followed Option Care Health’s preliminary guidance for 2026, released in mid-January, which forecasts adjusted EBITDA in a range of $480 million to $505 million. That guidance marks a notable rise from the company’s trailing twelve months adjusted EBITDA of $401.29 million, underscoring an expected acceleration in profitability.
Option Care Health also provided an estimate for the gross profit impact related to Stelara, indicating management expects the effect to be between $25 million and $35 million. TD Cowen noted that questions tied to Stelara’s effects will likely diminish over time, with the potential exception of clarity around first-quarter patient census estimates.
The research firm said investor attention should increasingly shift toward the company’s growth levers, including market expansion and operational efficiencies delivered through its suite offerings. Excluding the impact of Stelara, TD Cowen projects adjusted EBITDA growth in the 10% to 13% range.
In related developments, Option Care Health reported preliminary fourth-quarter results that included expected revenue of $1.46 billion to $1.47 billion. The firm forecast adjusted EBITDA for the quarter in a range of $123.7 million to $127.7 million, figures that management said align with analyst expectations.
Several brokerages reacted to the company’s preliminary results and guidance. Jefferies raised its price target on Option Care Health to $37.00 and maintained a Buy rating. Truist Securities reiterated a Buy rating and kept a $40.00 price target. Citizens increased its price target to $38.00, citing the company’s diversified portfolio and robust cash flows. Stephens initiated coverage with an Overweight rating and set a $40.00 price target, referencing Option Care Health’s standing within the Healthcare Services sector.
The company also provided 2026 guidance and adjusted its full-year 2025 cash flow from operations forecast to below $320 million, a revision management attributed to strategic inventory purchases. Collectively, these updates and analysts’ responses reflect a broadly constructive view of Option Care Health’s near-term financial performance and strategic positioning.
Analyst reactions and company guidance together have reframed investor focus toward growth execution, margin expansion, and inventory management as the next set of catalysts for the stock.