Accendra Health Inc: Debt restructuring improves the near-term outlook

研报英文原文证据摘录

Accendra Health Inc: Debt restructuring improves the near-term outlook

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Accendra Health Inc

Debt restructuring improves the near-term

outlook

Reiterate Rating: UNDERPERFORM | PO: 2.70 USD | Price: 3.89 USD

Revenue growth and cost management still key for ACH 11 May 2026

Accendra reported a mixed quarter, with revenue underperformance and gross margin Equity

weakness offset by stronger SG&A cost management. Importantly, the company

announced a debt restructuring to push out maturities from 2027. We view the debt

Key Changesrestructuring favorably as it removes an overhang from the upcoming maturity

payments. At the same time, it does weaken the free cash flow generation for ACH in (US$) Previous Current

the near-term. Core growth ex-Kaiser was ~1% in 1Q and gross margins were pressured Price Obj. 2.25 2.70

from manufacture cost increases. The trajectory of these two levers will be important to 2026E EPS 0.50 0.26

monitor as a meaningful improvement would be required to achieve the 2H weighted 2027E EPS 0.81 0.32

guidance (~65% of FY EBITDA anticipated in 2H). While execution on taking out costs 2028E EPS 1.01 0.46

will be key for both the back-half weighted guide and the jumping off point for 2027, 2026E EBITDA (m) 338.2 327.9

ACH may need to reinvest to drive firmer growth across diabetes and respiratory to 2027E EBITDA (m) 358.2 347.5

support longer-term growth. Overall, we view the debt restructuring as positive, but 2028E EBITDA (m) 373.6 362.5

continue to see challenging fundamentals for the home health market and Accendra in

particular. We reiterate our Underperform rating and raise our PO to $2.70 from $2.25 Allen Lutz, CFA

Research Analyst

on ~8.5x CY26 EV/EBITDA less CapEx estimate. We raise the multiple slightly (from 8.0x) BofAS