RBC Capital Lowered Firm's PT on Chemed Corporation (CHE), Kept a Buy Rating

Chemed Corporation (NYSE:CHE) is one of the Best 52-Week Low Stocks to Buy According to Analysts. On June 30, RBC Capital analyst Ben Hendrix lowered the firm’s price target on Chemed Corporation (NYSE:CHE) from $674 to $640, while keeping an Overweight rating on the stock.

Hendrix expressed disappointment due to Medicare cap limitations affecting the company’s 2025 outlook. These limits are expected to weigh on revenue, especially for its hospice care segment, VITAS, in Florida. However, he is encouraged by VITAS receiving a new Certificate of Need (CON) in Pinellas County. This will help VITAS stay strong in a competitive market and manage Medicare cap pressures effectively going forward.

Hendrix also noted headwinds for Chemed Corporation (NYSE:CHE)’s Roto-Rooter segment. He highlights that an unexpected drop in residential volume hurt performance; however, the commercial business improved.

Chemed Corporation (NYSE:CHE) operates two main businesses. Its VITAS segment provides hospice and palliative care services. Whereas, the Roto-Rooter segment delivers plumbing, drain cleaning, water restoration, and related services.

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Disclosure: None. This article is originally published at Insider Monkey.