Shares of Aveanna Healthcare Holdings Inc. (AVAH) are soaring 5.12% in intraday trading on Tuesday, as investors react to a significant price target upgrade from UBS. The healthcare company's stock is gaining traction following the analyst's revised outlook, despite maintaining a cautious stance on the shares.
UBS, a leading global financial services firm, has raised its price target for Aveanna Healthcare to $6.75 from the previous $5, representing a substantial 35% increase. This adjustment in valuation has sparked renewed interest in AVAH stock, driving its impressive intraday rally.
However, it's worth noting that despite the higher price target, UBS has maintained its Sell rating on Aveanna Healthcare shares. This mixed signal suggests that while the firm sees increased potential value in AVAH, it still harbors concerns about the company's overall prospects. Investors appear to be focusing on the positive aspect of the raised target, fueling today's stock surge, but should remain cautious of the underlying Sell recommendation.