AdaptHealth (AHCO) expects "minimal impact" from tariffs in 2025, and the diabetes segment "appears to be turning a corner," RBC Capital Markets said in a report.

Discussions with AdaptHealth's "manufacturing partners have not indicated that tariffs are likely to pose a significant issue," the report said.

The diabetes segment turnaround seems to be "underway with new starts improving sequentially in two consecutive quarters," and the resupply attrition rate was the lowest in two years, RBC said.

AdaptHealth's Q1 sleep segment revenue fell 3% as setups came in "slightly below management expectations" at 113,000, RBC said.

Management is launching a "scheduling system to reduce friction for new setups, alongside other strategic tools to combat the competitive environment," the report said.

RBC cut its price target on AdaptHealth stock to $13 from $14, citing "industry multiple compression," and reiterated its outperform rating.

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