The brokerage attributed the downgrade to ongoing uncertainties in the company’s short-term performance. At present, ACH is dealing with challenges that seem short-term, though significant, such as the loss of the Kaiser contract. InvestingPro forecasts a 74 per cent deflation in revenue for FY2025, signalling a difficult period ahead.
However, BofA believes the recent strategic shifts can improve ACH’s long-term prospects. The company has divested its Products & Healthcare Services (P&HS) unit, which allows it to operate as a more focused Patient Direct business. The brokerage expects this streamlined approach to deliver clearer economics and support higher growth and margin potential in the years to come.
Based on the 8x CY26 EV/EBITDA adjusted for capital expenditure, the recent price target is set, which is already higher than the previous 6x. There is a significant change in the debt and cash following the divestiture, and the same applies to a 1–2 turn discount relative to the closest pure-play competitor. However, ACH may still struggle with undervaluation, which might point towards a current EV/EBITDA of 4.72x and a FAIR Financial Health rating, despite these near- and long-term challenges.
Meanwhile, the company has completed a notable corporate transition. Accendra Health, Inc. now trades on the New York Stock Exchange under the ticker “ACH”, following the sale of its former Products & Healthcare Services division, including the Owens & Minor brand, on 31 December.
Precisely these recent shifts define a notable strategic reset for Accendra Health, which has now positioned the company as a more focused operator and is leveraging this change to attract investors monitoring its progress in the months ahead.
