TD Cowen has raised its price objective for BrightSpring Health to $46.00 from $42.00 and maintained a Buy rating on the company, reflecting the firm's view that the shares still have upside from the stock's current level. BrightSpring (NASDAQ:BTSG) was trading around $38.49 at the time of the note, while the shares remain close to a 52-week high of $41.03. According to InvestingPro data cited in the coverage, the stock has returned 69% over the past year.
In justifying the higher target, TD Cowen pointed to expectations for sustained momentum into the fourth quarter. The research note identified three primary drivers: favorable trends in specialty oncology generics, a ramp in Limited Distribution Drugs (LDDs), and improving results in BrightSpring's Infusion segment. Those dynamics, the firm said, underpin a higher earnings profile in the near term.
TD Cowen's quarterly model calls for adjusted EBITDA of $188 million, versus a consensus estimate of $177 million for the same period. The note highlighted that the upcoming release of 2026 guidance will be a focal point for investors and analysts, with TD Cowen anticipating roughly 15% adjusted EBITDA growth for 2026 after the company is expected to deliver 32-34% growth in 2025.
The analyst also flagged the importance of greater clarity around the contribution from the AMED assets. TD Cowen's estimate places AMED-related adjusted EBITDA contribution in a $35-40 million range, a figure the firm expects to be refined as management provides additional details.
Those estimates followed BrightSpring's recently reported third-quarter 2025 results, which topped Wall Street expectations. The company posted earnings per share of $0.30 versus a consensus projection of $0.22, representing a 36.36% surprise to the upside. Revenue for the quarter reached $3.3 billion, up 28% year-over-year, while adjusted EBITDA rose 37% year-over-year to $160.4 million.
Investor response from the sell side has been broadly constructive since the quarterly report. BTIG raised its price target on BrightSpring to $41 from $30 and kept a Buy rating, citing the company’s strong growth. BMO Capital lifted its target to $46, pointing to accelerating expansion in BrightSpring's specialty business as the rationale. KeyBanc upgraded its rating to Overweight with a $45 target following meetings with management, and Stephens initiated coverage with an Overweight rating and a $44 price target, calling out notable growth in the Pharmacy Solutions segment.
Taken together, the recent analyst activity and company results suggest a generally positive sentiment among analysts, with attention focused on how the company translates recent operational strength into 2026 guidance and how much incremental adjusted EBITDA the AMED assets will contribute. Market participants will be watching upcoming disclosures and quarterly updates for confirmation of the trends TD Cowen and others expect to sustain near-term performance.
Contextual note - The details above reflect published analyst estimates, company-reported results, and subsequent analyst actions. Where guidance is awaited or estimates vary, the outcomes remain dependent on the company’s forthcoming disclosures.