On Monday, Privia Health Group Inc (NASDAQ:PRVA) received an updated stock rating from investment firm Jefferies. The analyst covering the stock has initiated coverage with a Buy rating, while also adjusting the price target to $25.00, down from the previous target of $33.00.
Privia Health, known for its technology-driven healthcare model, operates in a substantial Total Addressable Market (TAM) valued at approximately $1.9 trillion.
The company has established a reputation for delivering value to physician partners through its Fee-For-Service (FFS) book. Additionally, Privia Health is transitioning towards Value-Based Care (VBC) and risk-based contracting, which is expected to contribute to its growth trajectory in the coming years.
The analyst highlighted the company's balanced exposure to both FFS and VBC, suggesting that this will enable Privia Health to maintain a consistent earnings path. The company's long-term upside is anticipated to be bolstered by the expansion of risk-based contracts within its existing physician network.
Furthermore, Privia Health's business model, which emphasizes minimal capital expenditure and a focus on technology, positions the company to generate cash flow efficiently even amid rapid growth.
The new price target of $25.00 reflects the analyst's confidence in Privia Health's ability to grow and adapt in the evolving healthcare market. Despite the reduction from the previous target, the Buy rating indicates a positive outlook for the company's stock performance.
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